Altcoins Continue To Bleed As Bitcoin Drops By Nearly 11% In A Week

The total market capitalization of cryptocurrencies has dipped to $2.3 trillion for the first time in several weeks. Recent economic uncertainty in the US has caused Bitcoin (BTC) to tumble, with its price dropping to $60,500, a level not seen in almost three weeks. Meanwhile, altcoins are struggling even more. In the past day, SOL, TON, and UNI have each fallen by over 5%, and ETH has slipped below $3,000.

BTC Hits 3 Week Low

The week started off with a surprise. On Monday, Bitcoin soared to $70,000, buoyed by Donald Trump and his high-profile appearance at the 2024 Bitcoin Conference in Nashville. However, this peak was short-lived, as Bitcoin quickly fell nearly $4,000. After a brief period of stability on Tuesday and Wednesday, bearish trends took hold again on Thursday and Friday, driving the price of BTC down to $60,500.

This is the lowest Bitcoin has been since July 14th. The decline is largely due to economic uncertainties in the United States, highlighted by a recent disappointing job report, which revealed the highest unemployment rate since October 2021 at 4.3%.

Market Impact

The drop triggered a wave of investor withdrawals concerning Bitcoin ETFs, and Wall Street also took a hit. Bitcoin has since partially recovered to around $62,000, with its market cap falling below $1.220 trillion and its dominance over altcoins at about 53%.

Altcoins have experienced even steeper declines than Bitcoin. Ethereum has lost 5% in a day and is now trading below $3,000. BNB has seen a similar daily drop, falling under $550. Solana, Toncoin, and Uniswap have dropped 5%, 6%, and 5.5%, respectively. Other significant losses include FLOW (-12%), MKR (-9.5%), WIF (-9%), JUP (-9%), and ONDO (-9%).

Other Markets

Donald Trump is actively campaigning in Pennsylvania, making headlines as he stumps across the state. Meanwhile, investors are on edge, bracing for a tumultuous end to 2024 due to expected Federal Reserve rate cuts and increasing concentration in big tech.

Elsewhere, Japanese markets are experiencing turbulence due to recent rate hikes, prompting investors to adopt long-term strategies to weather the storm. In China, the economy continues to advance with limited momentum, while Libya faces a partial shutdown of its largest oil field amid ongoing conflict. On the other side of the globe, Mexico has resumed avocado exports to the U.S. following a brief suspension.

In financial news, Apax-backed crate supplier Tosca is negotiating with lenders for critical funding, and the impact of a year of high Federal Reserve rates on the U.S. economy is under scrutiny. Credit traders are rushing to hedge against uncertainties in the U.S. economy, and a U.S. LNG exporter is seeking legal recourse against Kiewit over pollution disputes.