Bitcoin Slumps After Hitting ATH As Altcoins Try To Stabilize

After several days of consecutive price declines, Bitcoin (BTC) looks to reverse its fortunes as it surged above $99,000 not too long ago. Altcoins are also showing positive movement following the market-wide downturn, with many experiencing double-digit percentage gains on a daily basis. The market cap of BTC has also recovered to $1.95 trillion, and its dominance over altcoins stands at 54.6%, according to CoinGecko.

BTC Begins Recovery

The start of the business week saw a strong performance for Bitcoin, with its price rising to a new ATH of over $108,000 by Tuesday. The market was optimistic, expecting a push towards $110,000, especially after the U.S. rate cut on Wednesday. However, the situation quickly shifted and rather than continuing to climb, Bitcoin began a significant retracement.

The flagship crypto first fell below the $100,000 mark, and the decline continued as the bears maintained pressure. By Friday, Bitcoin dropped to a three-week low of $92,000, leading to concerns about whether this was a typical correction or the end of the bull market. As of now, it appears to be the former. Bitcoin halted its downward slide and made a strong rebound after surging to $99,000 before stabilizing at around $96,000.

Altcoins Continue To Struggle

Altcoins were hit even harder than Bitcoin during the market-wide decline, as anticipated. However, they have seen a recovery on a daily scale after Friday. Ethereum (ETH) dropped to $3,300 but rose to nearly $3,500, marking a 6% daily increase. XRP is also back above $2.20 after falling below $2 earlier on in the weekend.

Other notable gains include BNB, SOL, TRX, and HBAR, each showing around 5-6% growth on a 24 hour basis. More substantial price jumps have been seen in DOGE, ADA, AVAX, LINK, SHIB, TON, DOT, and several others, all of which have experienced double-digit increases. The total cryptocurrency market cap fell below $3.4 trillion yesterday but has since rebounded to surpass $3.55 trillion.

Other Markets

Residential buildings are rising across Shanghai as home sales in China continue to slump, with the absence of sustained stimulus efforts exacerbating the property crisis now in its fifth year. Amid global concerns, the Panama Canal has decided to maintain its limits due to drought-induced drops in lake levels, while Trump demands that Panama either reduce transit fees or return control of the canal.

Meanwhile, credit quality appears to have peaked, and companies like OpenAI and SpaceX are opting to stay private longer, avoiding public markets. Concurrently, India is experiencing a stock market boom reminiscent of the 1990s, with the Adani effect helping push Indian stocks ahead of most global markets in 2022. However, in Japan, bankruptcies are on the rise as citizens grapple with mounting debt.

Elsewhere, the European Central Bank is expected to continue its rate cuts into the next year, according to Vujcic, as Tesla gears up for earnings reports amid a $570 billion rally fueled by Elon Musk establishing a trading partnership with Donald Trump.