Crypto Analyzer

The Cryptocurrency Market: Bitcoin Falls 8%; Ethereum, BNB, and Solana Drop Around 10%

Latest Updates: Updated on Jul 5, 2024, at 5:10 PM IST

The cryptocurrency market has witnessed a significant downturn with Bitcoin (BTC) prices dropping by 8% to trade at $55,153.21, as of 4 p.m. The decline in BTC has extended to 10% over the past week, impacting other major cryptocurrencies such as Ethereum (ETH), BNB, Solana, XRP, Dogecoin, Cardano, and more, which have similarly fallen by up to 10%.

The recent price plummet is attributed to substantial liquidation events exacerbating the market downturn. Factors like supply overhangs from Mt. Gox, as well as regulatory pressures from the US and German governments, have added to the selling pressure on BTC. The market-wide liquidations have surpassed $300 million in the last 24 hours.

According to CoinSwitch Markets Desk, “With BTC prices now falling below the 200-day SMA line for the first time since October 2023, traders will closely monitor the trendline stemming from the October lows to gauge potential price movements.”

Moreover, Bitcoin, the leading cryptocurrency, recently reached a market capitalization of $1 trillion, reflecting the market’s scale and influence. Bitcoin Dominance stands at 54.03%, indicating its significance in the overall cryptocurrency market. The 24-hour trading volume of Bitcoin surged by 35.66% to $51.08 billion on the previous day.

Mr. Rajagopal Menon, Vice President of WazirX, commented on the recent market trend, stating, “Bitcoin (BTC) experienced a wave of liquidations totaling $121.29 million, reflecting heightened volatility and bearish sentiment. Ether (ETH) faced notable pressure, dropping by 5% despite speculation about a potential spot Ether exchange-traded fund (ETF).”

In light of these developments, investors and traders are advised to exercise caution and closely monitor market trends before making any significant investment decisions.