Bitcoin Plummets Below $58K, Leading to $80 Billion Crypto Market Wipeout
Bitcoin's price surged to nearly $62,000 yesterday, reaching a multi-day high, only to face a sharp rejection that drove it back down by about $4,000. The broader cryptocurrency market mirrored this decline, with altcoins also experiencing losses. Ethereum, for instance, pulled back by 4.5%, slipping to just over $2,600.
The past week has been a rollercoaster for Bitcoin, marked by volatility but also a significant recovery. By Friday, Bitcoin had almost touched $63,000, rebounding impressively after dropping over $13,000 from its Monday low. However, the momentum didn't last. The weekend saw Bitcoin losing some ground, oscillating between $60,000 and $61,000, and starting the new week with another dip, though less severe, as it briefly fell below $58,000 on Monday.
Tuesday and Wednesday brought some relief, with Bitcoin climbing back to nearly $62,000, fueled by the release of the U.S. Consumer Price Index (CPI) data for July. Yet, the positive trend was short-lived. Bitcoin's price took another hit after reports surfaced that the U.S. government had transferred approximately $600 million to Coinbase Prime. This led to a local low of just under $58,000 hours ago. Although Bitcoin has since bounced back slightly above that level, it remains down over 4% for the day. Consequently, its market capitalization has decreased to $1.150 trillion, and its dominance over altcoins has slipped to 53.3%.
Among the larger-cap altcoins, Ethereum has been one of the hardest hit, dropping by a similar percentage to Bitcoin. It now sits just above $2,400, with recent sales by Jump Crypto sparking concerns about a potential further decline.
Other major cryptocurrencies like Binance Coin, Solana, Ripple, Toncoin, Dogecoin, Cardano, Shiba Inu, Bitcoin Cash, and Polkadot have also turned red. In contrast, Tron has managed to post a minor gain.
The mid-cap altcoins haven't fared much better, with TIA, WIF, and BRETT leading the losses, each down by 7-9%.
Overall, the total cryptocurrency market capitalization has dropped to $2.160 trillion, shedding approximately $80 billion since yesterday.