- Bitcoin Trading has dropped below $42k, the first time in 3 weeks.
- Ether and other altcoins have also seen losses since the late-March rally.
The prices of major cryptocurrencies have experienced a sudden slump, resulting in the total crypto market cap to decrease to $2 trillion. This downward trend began late yesterday and continued throughout the night, remaining the main theme of the day.
A Crimson Coloration
Market leader Bitcoin has dropped to $41,030, indicating a 3.7% drop in the day’s activity and a 10.85% decline for the week. Data reveals that this is the least BTC/USD has been since March 22. Ether has also felt the pressure, dropping 6.25% in the past 24 hours and is likely to go below $3,000, as it has lost support above $3,080.
Other tokens among the major 10 have suffered larger losses. XRP has decreased 6.59%, LUNA has slipped 6.37%, SOL has fallen 7.82%, and Cardano has plummeted 8.34%. The greatest loss was seen with AVAX, which has dropped 9.46% in the day and 20% over the past 7 days.
Overall, $230 billion has been wiped off the crypto market, with CoinMarketCap data showing the market cap dropping from $2.1 trillion to $1.87 trillion at the time of writing.
Where Are The Risks?
Many anticipated that the Bitcoin Conference this year would bring positive news, updates, and information that could drive Bitcoin to new heights, much like the prior event. Unfortunately, this has not been the case.
Yesterday’s report of the Luna Foundation buying $170 million worth of Bitcoin did not have much of an effect on the economy or the price of Bitcoin. This is in stark contrast to the historical rally that usually follows such large purchases.
Market pundits have explained the recent pullback as being due to macroeconomic uncertainty and the strength of the US Dollar (DXY).
