Bitcoin Undergoes Price Correction As International Conflict Escalates

Bitcoin (BTC) encountered a substantial downturn recently, witnessing a decline that pushed its value downward by approximately $5,000 within hours. Numerous altcoins also experienced significant price drops exceeding 10% within a 24 hour timeframe. The rising dominance of Bitcoin during this correction signifies poor performance by altcoins. Though some have rebounded, various 24 hour charts still reflect significant losses.

Major losers among higher-cap altcoins include XRP (-11%), SOL (-13%), DOGE (-13%), ADA (-13%), AVAX (-18%), SHIB (-12.5%), BCH (-10.5%), DOT (-13.5%), LINK (-14%), among others. Meme coins were also heavily affected, experiencing losses of up to 30% in certain cases. At one point, the total crypto market cap dropped by over $200 billion, and although it has slightly recovered since, it remains below $2.6 trillion.

An Inevitable Decline

The week had initially shown promise for the flagship cryptocurrency. Starting strong on Monday, Bitcoin surged to a four-week peak of over $72,500 amidst rising demand for spot ETFs. However, it failed to sustain this momentum, retracing to $67,500 by Wednesday following the announcement of higher-than-expected March inflation data in the US. Despite some recovery in the following days, with a brief challenge of $71,000 on Friday, Bitcoin faced a sharp correction triggered by recent US Fed statements on monetary policy, resulting in a massive drop and nearly $1 billion in liquidations.

Despite Bitcoin managing to recover some ground, its market capitalization has fallen to $1.330 trillion on CoinMarketCap. A silver lining is the increase in the dominance of Bitcoin to 51.7%, up over 1% in a day. The crash also impacted other financial markets, including gold.

Other Markets

El Salvador saw its economy show resilience recently, surpassing GDP projections. Elsewhere, Wall Street grapples with uncertainty amid a barrage of adverse news especially after the Iranian attack. The European Central Bank hints at interest rate cuts in June, while tech giants face financial strains, leading to aggressive creditor actions. Latin America emerges as a promising center for food oil production.

Geopolitically, Iran extends its influence through allied groups, and Ukraine engages in bond restructuring amidst tensions with Russia. Commodity markets react to bans on Russian metal imports. Former US President Trump remains active in SPAC deals despite financial setbacks. Notably, Ghana secures IMF funds amidst economic challenges, and the Qatar Royal Family bolsters its position with a substantial fortune. Lastly, India implements emergency measures to manage summer energy demand, while Ukraine reports escalating conflicts in the east amidst Russian aggression.