- Bitcoin hit a 12-day low, influenced by the Federal Reserve’s decision.
- Altcoins, including XRP, follow BTC’s downward trend.
- BTC’s market dominance drops to 48.9% on CMC.
The price of Bitcoin has bearished to its lowest level in 12 days, dipping below $26,000 on Monday amidst a turbulent period for the cryptocurrency market. This decline in Bitcoin’s value has sparked concerns among investors as other major digital currencies also experienced losses.
The drop in the world’s largest cryptocurrency by market capitalization comes as the crypto market faces increasing uncertainty.
Federal Reserve’s latest decision weighs on Bitcoin momentum.
Image source: Coinmarketcap
Bitcoin had started positively last week, rising above $27,000 to a peak of $27,500 on Tuesday. However, the momentum could have been more-lived following the U.S. Federal Reserve’s recent policy meeting. The Fed refrained from hiking interest rates, which some say contributed to Bitcoin’s reversal from its highs.
Cryptocurrency prices have often moved in contrast to decisions made by central banks regarding monetary policies. But the Fed’s latest move has more directly impacted Bitcoin’s trajectory. This highlights the continuing correlation between macroeconomic factors and the cryptocurrency market.
After the Fed news, Bitcoin’s price retraced lower starting Wednesday, dropping below $27,000. By Thursday, it had sunk to $26,400 before starting this week dipping below $26,000.
Altcoins follow Bitcoin lower; XRP hits sub-$0.50 levels.
Image source: Coinmarketcap,
The drop in Bitcoin’s value has also rattled the broader cryptocurrency market as significant altcoins followed a similar downward path.
Ripple’s XRP, the third-largest crypto asset, has sunk below the $0.50 mark amid this broad market sell-off. XRP lost 3% of its value and could sink lower if the uncertainty persists. Another top 10 cryptocurrency affected is Tron’s TRX token, which fell over 3% to around $0.06.
Bitcoin’s market capitalization declined below $500 billion, significantly from last week’s highs above $570 billion. Its market dominance decreased to 48.9% as investors turned to altcoins seeking better returns.
This volatility highlights the unstable nature of the nascent crypto asset market. With the week just starting, traders will have their eyes glued on price charts to see where Bitcoin and altcoins head next. Unless the market regains its bullish momentum, the downturn could deepen further. But if history is any indication, the long-term growth trajectory of cryptocurrencies remains positive.
