Bitcoin’s situation worsened once more in the past 24 hours, and the asset fell to its lowest position since January 24. Somewhat expectedly, the alternative coins are in an even worse shape, with massive price losses from Terra, MATIC, CRO, and others.
Bitcoin’s New Low
Once the US Federal Reserve announced that it would raise the interest rate by 50 basis points, instead of the expected 75, last week, the price of bitcoin surged and touched $40,000. However, this did not last long as the asset reversed course in the following days.
At first, it dumped by more than $4,000 to $36,000. While it managed to remain there yesterday, it took another turn for the worse in the past several hours. This time, BTC plunged to just over $34,000 for the first time since January 24 (on Bitstamp).
Naturally, the loss of around $6,000 in just a few days led to a substantial change in overall sentiment, as the Bitcoin Fear and Greed Index entered “extreme fear” territory.
As of now, bitcoin struggles at $34,500, and it’s about 4% down on the day once again. Additionally, its market capitalization has declined to around $660 billion.
Variants bleed
As mentioned above, alternative coins are also suffering, with red dominating almost all charts. Ethereum leads this unfavorable trend with a daily decline of 4.5%. On a weekly scale, ETH is down over 8% and the second largest crypto has fallen to $2,550 after surging above $3,000 not too long ago.
Binance Coin has lost a similar percentage and now sits below $360. Ripple, Solana, Cardano, Polkadot, Dogecoin, Avalanche, Shiba Inu, and NEAR Protocol are also deep in the red.
For the second day in a row, Terra is the biggest loser among the larger-cap alts. LUNA has lost another 13% of its value and is now struggling below $65. MATIC, Shiba Inu and CRO also lost substantial shares of value.
Aside from Algorand, Axie Infinity, and Tezos, most other lower- and mid-cap alts are in the red as well. As such, the crypto market cap has plummeted below $1.6 trillion for the first time in months. This means that the metric has declined by over $200 billion in a few days.
