The last 24 hours have ushered in a fresh wave of instability for the cryptocurrency market. Bitcoin (BTC) dipped as low as $80,000 before the bulls managed to recover some of the losses.
As expected, alternative coins mirrored the downturn of this leading digital asset, with many recording significant losses.
Another Downtrend for BTC
Despite experiencing brief spikes, Bitcoin has unmistakably been on a downward trajectory over the past few days. As CryptoPotato reported, the price had consolidated around $86,000 over the weekend. However, the start of the business week brought another setback for the bulls.
Just a few hours ago, BTC plummeted to a low of $80,000, resulting in multi-million dollar liquidations within a 24-hour timeframe. Fortunately, the asset has since rebounded, recovering to nearly $84,000 according to data from CoinGecko.
The heightened volatility is likely to persist in the short term, particularly given the upcoming US CPI report scheduled for March 12. This report will unveil the inflation rate in the world’s largest economy, which could prompt an interest rate adjustment by the Federal Reserve. Historically, such actions have had a direct impact on BTC’s price performance.
As it stands, Bitcoin’s market capitalization is approximately $1.66 trillion, with its dominance against altcoins remaining close to levels seen on March 9, hovering around 58.1%.
Alts Turn Red, Too
In the wake of Bitcoin’s fluctuations, alternative cryptocurrencies have also entered the red territory. Ethereum (ETH), for instance, plummeted to a multi-year low of under $2,000 before recovering somewhat to about $2,120 at present.
Other notable cryptocurrencies such as Ripple (XRP), Solana (SOL), Dogecoin (DOGE), Litecoin (LTC), and Toncoin (TON) have reported equally poor performance. Additionally, Pi Network (PI) continues to face challenges, currently priced at around $1.43, marking a 14% decline on a weekly scale.
Among the very few top 100 cryptocurrencies that have seen some gains in the last 24 hours are Ethena (ENA), Aave (AAVE), and Story (IP).
The total cryptocurrency market capitalization now stands at approximately $2.82 trillion, reflecting a 5% decrease in just one day.
