$40B Gone From Crypto Markets as Bitcoin Drops Below $41K (Market Watch)

After several days of trading sideways, BTC’s price trajectory reversed once more for the worse, and the asset slipped below $41,000.

Most alternative coins have followed suit, with AVAX and SOL dumping by more than 5%.

BTC Drops Further

The primary cryptocurrency faced enhanced volatility two weeks ago when the US Securities and Exchange Commission greenlighted 11 spot BTC ETFs. On the day that the products went live on US exchanges, the asset soared past $49,000 for the first time in nearly two years.

A day later, though – on Friday – Bitcoin slumped hard and lost over seven grand. Then came the previous weekend, in which BTC stood mainly around and under $43,000. What followed was a week of sideways trading, in which the cryptocurrency rarely showed any price fluctuations.

The most significant one came on Friday when BTC dropped to $40,200 to chart a monthly low. It managed to recover some ground on Saturday but still struggled around $42,000.

The past 24 hours brought some more pain for the bulls as BTC now stands below $41,000 once again. Its market cap has declined to $800 billion, but its dominance over the alts has increased slightly to 49.9% on CMC as most of them have suffered even more.

$40B Gone From Crypto Markets as Bitcoin Drops Below $41K (Market Watch)

Alts See Red

As mentioned above, most alts have turned red as well today. This adverse trend is led by Solana and Avalanche, as both of them have declined by 5-6%. As a result, SOL is below $90, while AVAX is close to breaking under $30.

The rest of the larger-cap alts are with losses as follows: ETH (-3%), BNB (-1.5%), XRP (-3%), ADA (-4.5%), DOGE (-3.5%), and DOT (-3%).

Further losses come from the likes of OP, INJ, NEAR, TIA, FIL, and ARB.

Overall, the entire crypto market has declined by roughly $40 billion overnight and sits at $1.6 trillion on CMC.

$40B Gone From Crypto Markets as Bitcoin Drops Below $41K (Market Watch)

Read More

2024-01-22 13:02