- The price of the digital currency fell below the $40,000 mark as traders increased their selling pressure.
- As the carnage continued, other Altcoins like Cardano and Solana faced steep falls.
- Market capitalization for the cryptocurrency markets stands at $1.87 trillion.
Top cryptocurrencies have seen losses of around 3 to 5 percent since the start of the month, and have shed most gains made since the beginning of the month.
Bitcoin suffered the biggest loss in its history as the price plummeted to less than $40,000.
Bitcoin’s Big Dip
On Tuesday, Bitcoin had the steepest fall in weeks. It has dropped below the $40,000 mark for the first time since March 16.
The asset had a price of $47,106 at the end of the trading week.
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At the start of the last weekend, the Nasdaq 100 was below the moving average and it was expected that Bitcoin would shed some of its value in sync with stocks.
Since the whispers of the Fed tightening monetary policy began last week, the price of oil has been steadily dropping.
The Federal Reserve may have to raise interest rates again. The threat of inflation and the global economy will force the Fed to take action.
“Fed tightening by 0.5 percentage point steps at the upcoming meeting as well as $95 billion per month balance sheet run-off sent crypto markets spiraling lower,” said Teong Hng, CEO of Satori Research.
Over the last 7 days, Bitcoin has fallen more than 8% and is now worth around $800 billion.
The asset was able to maintain a 40% market dominance even as trading volume skyrocketed by more than 117.07%. Many traders struggled to make sense of the raging confusion.
The Altcoin Markets
Bitcoin was not the hardest hit in the massive price correction that hit the markets this week. Instead, it was altcoins that appeared to be the biggest losers.
Amongst the top 10 largest cryptocurrencies, Avalanche’s AVAX recorded a loss of 10.69% in the last week.
Ethereum’s price has collapsed today after losing seven percent of its value to trade below $3,000.
Josh Olszewicz, research head at Valkyrie noted that “altcoins have a tendency to over-perform Bitcoin to the downside in strong bearish trading environments.” He added that the reason for the trend was because altcoin investors “often have less longer-term conviction.”
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