The recent economic uncertainty in the United States has had a significant impact on the cryptocurrency market, particularly on the price of Bitcoin. In the past day, Bitcoin’s price experienced a sharp decline, dropping to $60,500 for the first time in almost three weeks. This downward trend was mirrored by several other altcoins, with assets like SOL, TON, and UNI plummeting by over 5%. Even Ethereum slipped below the $3,000 mark, signaling a widespread bearish sentiment in the market.
The beginning of the week seemed promising for Bitcoin, as the asset surged to $70,000 following Donald Trump’s appearance at the 2024 Bitcoin Conference in Nashville. However, this peak was short-lived, and Bitcoin was quickly rejected and driven south by almost $4,000. The subsequent days saw a brief period of stability, but the bears regained control on Thursday and Friday, leading to a significant price plunge to $60,500 late at night. This price point marked the lowest level for Bitcoin since July 14.
The declines in cryptocurrency prices can largely be attributed to the economic uncertainty in the US. Friday’s weak job report, which revealed the highest unemployment rate since October 2021 at 4.3%, sent shockwaves through the market. Investors responded by withdrawing millions of dollars from spot Bitcoin ETFs, while Wall Street also experienced a sharp decline. Currently, Bitcoin has managed to recover some ground and is trading close to $62,000, with its market cap falling below $1.220 trillion.
Altcoins have also felt the impact of Bitcoin’s decline, with many assets seeing significant losses in value. Ethereum, for example, lost 5% of its value in a day and fell below $3,000. Other altcoins like BNB, Solana, Toncoin, and Uniswap also experienced substantial losses, with some assets dropping by double-digit percentages. The cumulative market cap of all crypto assets has dropped to $2.3 trillion, reflecting a $100 billion decrease since yesterday and a $150 billion decrease in the past two days.
The recent economic uncertainty in the US has resulted in increased volatility in the cryptocurrency market, with Bitcoin and altcoins experiencing significant price declines. Investors should exercise caution and closely monitor market developments to navigate these challenging times effectively.
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