The cryptocurrency market experienced a significant downturn, with Bitcoin (BTC) dropping below $100,000 despite multiple efforts to stabilize above $103,000. Ethereum (ETH) also faced a sharp 7.2% price decline, settling at $3,300, a critical support level.
Data from CoinMarketCap highlighted Bitcoin’s dominance rising to 57.4%, while the Fear and Greed Index fell to 62, reflecting a cautious investor sentiment. The market’s overall capitalization dropped to $3.35 trillion, with no signs of an altcoin resurgence.
Also Read: SEC Approves Bitcoin-Ethereum Combo ETFs, Signaling Increased Cryptocurrency Market Evolution
Federal Reserve Announcement Sparks Widespread Selloff
The U.S. Federal Reserve’s recent hawkish Federal Open Market Committee (FOMC) announcement triggered a massive selloff across risk assets. Major indices, including Nasdaq and S&P 500, saw declines of 3.56% and 2.95%, respectively. Bitcoin mirrored this trend, falling by 6.13%, as noted by Singapore-based digital asset firm QCP Capital.
The Fed revised its projection for 2025, reducing the anticipated rate cuts from three to two, due to persistent inflation concerns. While the announcement contributed to the crypto market’s downturn, QCP Capital emphasized that overly bullish market positions likely exacerbated the situation.
The firm suggested this crash might represent a correction phase, potentially offering future buying opportunities.
Altcoins Face Intense Pressure
In addition to Bitcoin and Ethereum, leading altcoins faced substantial declines over the past 24 hours. Solana (SOL) dropped 6.64%, falling below the $200 level, while Dogecoin (DOGE) recorded an 11.80% loss, trading at $0.3196.
Cardano (ADA) decreased by 8.36%, priced at $0.8982, and Avalanche (AVAX) plunged 8.18%, trading at $39.24. Shiba Inu (SHIB) also experienced a steep 9.25% decline, trading at $0.00002201.
Other major altcoins reported similar declines, with Uniswap (UNI) falling 11.05% to $12.94 and Near Protocol (NEAR) dropping 9.28% to $5.25. Ethereum Classic (ETC) and Filecoin (FIL) also witnessed declines of over 8%, with prices of $26.99 and $5.17, respectively.
Conclusion
The recent market crash highlights heightened volatility within the cryptocurrency space, influenced by macroeconomic factors and investor sentiment. While the downturn has raised concerns, analysts view it as a potential correction phase. As the market continues to respond to external pressures, investors may find opportunities in the shifting dynamics.
Also Read: El Salvador Scales Back Bitcoin Policies in Exchange for IMF Loan
