Bitcoin and the broader crypto market experienced a significant sell-off, with BTC plunging below $70,000 and the total market cap losing over $80 billion in a matter of hours. This drop comes after Bitcoin briefly surpassed $72,000 earlier in the week, painting a multi-week high.
The sell-off began on Friday evening, with Bitcoin failing to break above the $72,000 resistance level. The bears then drove the price down hard, with BTC dumping to a multi-day low of $68,500. While it has since recovered some ground and is now trading above $69,000, it remains 2.7% down on the day.
The altcoin market has fared even worse, with many major coins seeing double-digit losses. Ethereum has dropped by 3.5% and is now below $3,700, while BNB has fallen from over $710 to under $690. Solana has plummeted by almost 6%, and other notable losers include Dogecoin (-8.5%), Avalanche (-7%), Chainlink (-7%), Polkadot (-8%), NEAR (-8%), UNI (-7%), and MATIC (-8%).
The cumulative market cap of all crypto assets has dropped from yesterday's peak by more than $80 billion, falling to under $2.7 trillion. Bitcoin's market dominance has risen to 50.8% as the altcoins have suffered disproportionately.
This latest sell-off is reminiscent of the "Friday crash scenario" that has played out several times in recent weeks. It highlights the volatility and risk inherent in the crypto market, where prices can swing wildly based on a variety of factors, including technical resistance levels, market sentiment, and broader economic conditions.
Despite the recent losses, Bitcoin remains up significantly from its 2020 lows and has outperformed many traditional asset classes over the past year. However, the crypto market is still highly speculative and unregulated, and investors should be aware of the risks involved.
As the crypto space continues to evolve and mature, it will be interesting to see how the market responds to these types of sell-offs and whether Bitcoin and other digital assets can maintain their long-term upward trajectory. For now, traders and investors will be closely watching to see if Bitcoin can reclaim the $70,000 level and whether the altcoin market can stage a recovery.
