Bitcoin Plunges Over $3K After $85K Rejection, Altcoins Face Steep Losses
Just 24 hours after Bitcoin (BTC) reached new heights and traders eyed the $90,000 mark, the cryptocurrency has retreated sharply, with attention now focused on the critical $80,000 level as a potential support to avert a significant downturn.
The broader altcoin market has also experienced substantial declines, falling well below yesterday’s peaks. Monero (XMR) stands as a notable exception, while NEAR, Uniswap (UNI), Tao (TAO), Worldcoin (WLD), BitTorrent (BTW), and Aave (AAVE) have all registered considerable losses.
Bitcoin’s dip below $80,000 occurred precisely one week after inflation concerns resurfaced following the release of US Consumer Price Index (CPI) and Producer Price Index (PPI) reports. Despite an initial sharp decline, the cryptocurrency had shown resilience, rebounding by nearly $3,000 in a swift recovery. However, the weekend brought renewed volatility, including a flash crash on Saturday evening and a fresh drop below $81,000 on Sunday.
The bulls attempted to regain control on Monday, pushing BTC to $83,000. This resistance level proved formidable, leading to a $2,000 price drop. A subsequent, rapid price increase saw BTC climb back by the same margin, reaching above $83,000 again on Tuesday evening. The most significant gains were recorded on Wednesday, when Bitcoin surged to a two-week high of just under $85,000.
However, as the market sentiment appeared to improve, a sharp rejection occurred. Bitcoin plummeted to $83,000 within a few hours and has since fallen further, trading below $82,000 as of press time.
Bitcoin’s market capitalization has shrunk to $1.640 trillion, according to CoinMarketCap, while its dominance over the altcoin market remains at 60%.
Ethereum (ETH) had briefly surpassed $2,500 yesterday, but the strong market reversal has pushed it down by $100. Binance Coin (BNB) is now trading at $730, while Ripple (XRP) has once again been capped at $1.40 and is currently priced at $1.33. Solana (SOL), Hyper (HYPE), Zcash (ZEC), Dogecoin (DOGE), Chainlink (LINK), and Rain (RAIN) have all seen declines of 3% to 5%.
BitTorrent (BTW) has experienced extreme volatility, with a 25% plunge sending its price to $1.61. Uniswap (UNI), Tao (TAO), NEAR, Aave (AAVE), and Worldcoin (WLD) have also suffered significant drops. In contrast, Monero (XMR) has surged by nearly 11%, now trading at $650.
The total cryptocurrency market capitalization has decreased by over $60 billion since yesterday’s peak, now standing at $2.740 trillion on CoinMarketCap.
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