The crypto markets saw another downturn as bitcoin dipped to just over $20,000 for the second time in the past few days. Most altcoins have also retraced on a daily scale, with ETH going below $1,100.
Bitcoin’s latest plunge
The landscape around the main cryptocurrency continues to be bleak as the asset has lost around $10,000 in the past seven days. The start of this week brought more pain for the bulls as BTC hovered around $27,000 before beginning its rapid descent.
In just a matter of hours, bitcoin found itself dipping below $22,000 before it bounced off by a thousand dollars. However, the bears proved their dominance over the market and drove BTC south again. This time, it came just inches away from breaking below the coveted $20,000 mark.
As the Fed raised interest rates by 75 basis points, BTC went on the offensive and hit $23,000 before starting to lose ground again.
In the past 24 hours, the cryptocurrency dropped to a low of $20,250 (on Bitstamp). As of now, it has recovered around $1,000 and sits at just over $21,000. Its market capitalization is at $400 billion, but the dominance over the altcoins has been further reduced to 44.3%.
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Notable Bitcoin News
Amid the current market turmoil, the so-called king of bonds – Jeffrey Gundlach – claimed that the asset could fall even further to around $10,000.
The president of the CAR – the second-ever nation to adopt BTC as legal tender – noted that people who spend enough time understanding bitcoin now will prosper in the future.
FTX CEO Sam Bankman-Fried clarified his view on bitcoin serving as a payment method, saying that layer 2 solutions could ultimately help the asset.
ETH Dropping Again
The alternative coins have mimicked BTC’s performance to a large extent in these challenging times. As such, most are in the red on a daily scale now.
Ethereum continues to be among the biggest losers. In the past 24 hours alone, ETH lost over 6% of its value and even fell below $1,100 earlier today. Thus, the second largest crypto is down nearly 50% in the past week.
Polkadot has seen a large chunk of value gone as well, being down 6.5% on the day. BNB, ADA, SOL, DOGE, and SHIB are also in the red, while XRP is among the few exceptions from the larger-cap alts.
This increased volatility with altcoins as well as bitcoin has resulted in a large number of liquidations – over $200 million on a daily scale.
