Bitcoin dropped by more than $5,000 in hours and dumped to its lowest price point in roughly six months. The altcoins are also deep in the red, with Ethereum sliding below $4,000 and the entire market cap losing about $200 billion in a day.
Bitcoin Dumps to a 6-Month Low
After the past several days of gradually decreasing in value and calming around $42,000, the primary cryptocurrency finally initiated an impressive leg up. It shot up by $1,500 in hours and touched a multi-day high at $43,500.
As the bulls were preparing for another increase, the bears came to play and changed the landscape vigorously. Bitcoin started to lose value massively and dumped to $40,000. However, the worst was yet to come.
In the following hours, BTC lost that coveted resistance line and kept plunging. This time, it plummeted to $38,250, which became the lowest price level since August 5th, 2021.
Somewhat expectedly, this enhanced volatility caused pain for over-leveraged traders, with the liquidations rising above $700 million in a day.
As of now, the asset has recovered some ground and stands around $39,000. However, its market capitalization has suffered quite a bit and is now beneath $750 billion.
Altcoins in a Sea of Red
The altcoins also jumped in value yesterday, but as with bitcoin, it turned out to be a false breakout. As of now, the entire alt landscape is in red.
Ethereum touched $3,200 yesterday but an 8% slump has driven the second-largest cryptocurrency to under $2,900. Binance Coin (-8%), Cardano (-8%), Solana (-9%), Dogecoin (-7%), Avalanche (-9%), Shiba Inu (-7%), MATIC (-7%), and Ripple (-7%) are all well in the red on a daily scale.
NEAR Protocol and Algorand have lost even more value on a daily scale, dropping by 13% each.
Even more price losses are evident from SCRT (-20%), LRC (-15%), POKT (-14%), QNT (-14%), RUNE (-13%), Gala (-12%), AAVE (-11.5%), ZEC (-11.5%), and many others.
Ultimately, the cryptocurrency market capitalization went down by $200 billion from yesterday’s peak at $2.050 trillion to below $1.850 trillion.