It seems the crypto rollercoaster has taken a sharp dip! Our beloved Bitcoin, the world’s largest cryptocurrency by market cap, decided to show its volatile side again on Thursday evening. And guess what? It didn’t go solo. It dragged the entire crypto market down with it. Talk about being influential!
Bitcoin’s value plummeted almost 8% in just a day, diving from a comfortable spot above $29,000 to a not-so-cozy $25,400. But hey, every cloud has a silver lining. As of the time of writing, Bitcoin has managed to pull itself up a bit, trading above $26,000. But here’s the kicker: Bitcoin wasn’t the only one feeling the blues. Among the big players in the crypto market, XRP, Litecoin, and Bitcoin Cash felt the heat even more. XRP and Litecoin dropped around 13%, while Bitcoin Cash decreased by about 10% in the past 24 hours.
If you think this is just a crypto thing, think again. The total cryptocurrency market hit about 6.6%, more than the Nasdaq’s 2.5% and the S&P 500’s 1.6%. Doing the math, that’s a whopping $60 billion vanishing from the total cryptocurrency market cap in just 24 hours, according to CoinMarketCap.
So, what caused this sudden nosedive? After enjoying a period of stability, with Bitcoin hovering near $30,000 for over a month, this drop was unexpected. The rally that followed a series of applications for Bitcoin spot ETFs, especially from the big gun BlackRock in June, set a positive tone.
But the reasons for this drop need to be clarified. The global economic outlook has been shaky recently, especially with concerns about China’s state-owned property developers spiraling. And no, Elon Musk’s SpaceX isn’t to blame for selling hundreds of millions in Bitcoin.
James Butterfill, the head honcho of research at digital assets investment firm CoinShares, shed some light on the situation. He believes this dip results from a mix of events, including concerns over China’s economic future, low Bitcoin trading volumes, and the ongoing impact of regulatory actions on the market.
But hey, it’s not all doom and gloom! Despite this downturn, Bitcoin is still the king of the crypto world. Starting the year at less than $17,000 and even after this sudden dip, Bitcoin’s value has increased by more than 56% year to date. So, hold onto your hats, crypto enthusiasts. The ride’s still ongoing!
