The recent economic uncertainty in the United States has had a significant impact on the price of Bitcoin and altcoins. In the past day, Bitcoin’s price plummeted to $60,500, marking its lowest point in almost three weeks. Altcoins such as SOL, TON, and UNI have also experienced sharp declines, with losses exceeding 5%. Additionally, Ethereum has slipped below the $3,000 mark, further adding to the pressure on the cryptocurrency market.
The start of the business week seemed promising for Bitcoin, as the asset surged to $70,000 following Donald Trump’s attendance at the 2024 Bitcoin Conference in Nashville. However, the price rally was short-lived, and Bitcoin was quickly rejected at the 7-week peak, leading to a swift decline of four thousand dollars. The subsequent days saw heightened market volatility, with bears regaining control and initiating further downward movements that culminated in the price drop to $60,500.
The recent uncertainties surrounding the US economy have played a significant role in the downward trend of Bitcoin and altcoins. Friday’s weak job report, which indicated the highest unemployment rate since October 2021 at 4.3%, sent shockwaves through the market. Investors reacted by withdrawing millions of dollars from spot Bitcoin ETFs, leading to a sharp decline in Bitcoin’s market cap to under $1.220 trillion. The dominance of Bitcoin over altcoins also decreased to around 53%.
The decline in Bitcoin’s price has had a ripple effect on altcoins, with many of them experiencing even more significant losses. Ethereum, for example, lost 5% of its value in a single day and dropped below $3,000. Other altcoins such as BNB, Solana, Toncoin, and Uniswap have also suffered losses ranging from 5% to 6%. Furthermore, coins like FLOW, MKR, WIF, JUP, and ONDO have seen double-digit declines, contributing to the overall market cap drop of all cryptocurrencies to $2.3 trillion.
The recent economic uncertainties in the US have led to heightened volatility in the cryptocurrency market, resulting in significant price declines for Bitcoin and altcoins. While Bitcoin has shown some signs of recovery, the overall market remains under pressure, with investors closely monitoring the developments in the economy for further insights into the future direction of the market.
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