The cryptocurrency market has suffered a significant blow, with liquidations amounting to $200 million as Bitcoin plummeted to a monthly low of $65,000, dragging down other altcoins.
This decline has impacted over 75,000 traders and investors in the crypto sector.
While Bitcoin has slightly rebounded to $66,000 at the time of writing, the damage has already been done.
Bitcoin began the week positively, peaking at just over $70,000 on Monday, only $3,000 short of its all-time high of $73,000 in March. However, the momentum was short-lived, as uncertainties surrounding the Consumer Price Index and the Federal Open Market Committee meeting, which decided against interest rate cuts, led to a drop in Bitcoin’s price to $66,000. The Consumer Price Index data also showed improvement compared to the previous month.
Bitcoin briefly surged back to $70,000 before falling again to $67,000. On Friday evening, Bitcoin hit a monthly low of $65,000. Despite a slight increase to $66,000 on Sunday, Bitcoin remains down by 4.0% over the past week. This decline resulted in a $200 million loss for more than 75,000 traders.
The drop in Bitcoin’s price had a ripple effect on altcoins, with most experiencing significant declines over the weekend. This trend underscores Bitcoin’s critical role in the cryptocurrency ecosystem. Solana fell by 3% to $143, while DOGE and SHIB dropped by nearly 5%. AVAX, DOT, and ADA saw declines of around 2-4%.
However, some altcoins defied the trend. Ton grew by 3% to over $8, and UNI also saw a 3.5% increase to around $11. NEAR, FIL, FET, and AR suffered the most substantial losses among altcoins over the weekend.
Bitcoin’s market capitalization decreased to $1.3 trillion following its drop to $65,000. Despite this, Bitcoin still holds a dominant position in the market, commanding a 51% share. The total market capitalization of all cryptocurrencies fell by $50 billion overnight, reflecting the overall price drop.
The market saw a slight recovery on Sunday afternoon, with most altcoins experiencing less than a 1% price increase.
