Bitcoin’s situation worsened once more in the past 24 hours, and the asset fell to its lowest position since January 24. Somewhat expectedly, the alternative coins are in an even worse shape, with massive price losses from Terra, MATIC, CRO, and others.
Bitcoin’s New Low
Once the US Federal Reserve said it will increase the interest rate by 50 basis points, instead of the expected 75, last week, bitcoin’s price jumped and touched $40,000. However, that didn’t last long as the asset reversed its trajectory in the following few days.
At first, it dumped by more than $4,000 to $36,000. While it managed to remain there yesterday, it took another turn for the worse in the past several hours. This time, BTC plunged to just over $34,000 for the first time since January 24 (on Bitstamp).
Naturally, losing roughly $6,000 in just a few days resulted in a substantial change in the overall sentiment, as the Bitcoin Fear and Greed Index went into a deep “extreme fear” territory.
As of now, bitcoin struggles at $34,500, and it’s about 4% down on the day once again. Additionally, its market capitalization has declined to around $660 billion.
Alts Bleed Out
As mentioned above, the alternative coins are also suffering, with red dominating almost all charts. Ethereum leads this adverse trend with a 4.5% daily drop. On a weekly scale, ETH is down by more than 8%, and the second-largest crypto has declined to $2,550 after exceeding $3,000 not that long ago.
Binance Coin has lost a similar percentage and now sits below $360. Ripple, Solana, Cardano, Polkadot, Dogecoin, Avalanche, Shiba Inu, and NEAR Protocol are also deep in the red.
For the second consecutive day, Terra is the most significant loser from the larger-cap alts. LUNA has lost another 13% of value and now struggles beneath $65. MATIC, Shiba Inu, and CRO have lost substantial chunks of value as well.
Aside from Algorand, Axie Infinity, and Tezos, most other lower- and mid-cap alts are in the red as well. As such, the crypto market cap has plummeted below $1.6 trillion for the first time in months. This means that the metric has declined by over $200 billion in a few days.
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Cryptocurrency charts by TradingView.