Cryptocurrency Market Update: Bitcoin and Altcoins Experience Sharp Decline

The cryptocurrency market witnessed a significant downturn recently, with Bitcoin and several other altcoins experiencing a sharp decline in prices. Bitcoin, the leading cryptocurrency, saw its prices plunging by up to 8% to $54,129 on Friday, marking a 12% drop over the past week. This downward movement had a ripple effect on other cryptocurrencies such as Ethereum (ETH), BNB, Solana, XRP, Dogecoin, Cardano, Tron, Avalanche, and Shiba Inu, which all fell by as much as 17%.

Various factors contributed to the recent sell-off in the crypto market. The uncertainty surrounding the US presidential election, movements of funds from Mt. Gox, as well as actions by the German government and the Federal Reserve, all added pressure on the market, leading to the price decline. Additionally, over $300 million in market-wide liquidations occurred in the last 24 hours.

Sathvik Vishwanath, Co-Founder & CEO of Unocoin, highlighted that Bitcoin dropped below $60,000 to $59,544 due to a stronger US dollar and uncertainty regarding Federal Reserve actions. The focus on traditional assets amid positive US labor market data has impacted the cryptocurrency market. He emphasized that Bitcoin’s future trajectory will be influenced by Fed decisions and economic indicators.

Despite the recent downturn, Bitcoin remains up by 80% over the past year. Analysts believe that bullish sentiment persists in the market, with expectations of a potential price rebound. The next support level for Bitcoin is around $54,900, with resistance at $56,700. Investors and traders are advised to closely monitor market developments.

Experts caution that economic indicators and shifts in Fed policy could rapidly alter Bitcoin’s outlook. Additionally, the upcoming Ethereum ETF launch on July 8 may introduce competition that could impact market dynamics. It is essential for market participants to stay informed and vigilant amidst ongoing market volatility.

It is important to note that the views and opinions expressed by experts are their own and do not necessarily reflect those of The Economic Times.

Source: CoinMarketCap