Altcoins Suffer Major Losses as Bitcoin Dips to $65.5K

On Friday night, Bitcoin experienced a dramatic price drop of $3,000 in just a few minutes, only to bounce back slightly to settle around $67,000.

The situation is even harsher for altcoins, as the total cryptocurrency market capitalization has decreased by approximately $70 billion overnight.

BTC’s Price Fluctuations

The workweek began on a positive note for Bitcoin, with its value rising from $68,000 to $69,500 on Monday, marking the highest point for the cryptocurrency since late July. Yet, it encountered immediate resistance at this peak, causing a decline to $67,000 by the close of the day and continuing into Tuesday.

Further volatility ensued on Wednesday, as bearish momentum pushed BTC down to $65,000. However, bulls stepped in, and Bitcoin surged back, reaching nearly $69,000 multiple times on Thursday and Friday.

The real price swings occurred after a WSJ report suggested that the US government was looking into Tether. Though the stablecoin company refuted the accusations, the market reaction was swift, leading to a drop of over $3,000 within minutes down to $65,500.

Bitcoin managed to recapture some of its losses and is now hovering around $67,000, but this volatility has resulted in over $400 million being liquidated. A drop of 1.3% in value has brought its market capitalization down to $1.320 trillion. Nevertheless, Bitcoin’s dominance over altcoins has risen to 55.7% on CoinGecko.

Altcoins Under Pressure

The implications of this news have hit altcoins even harder, evident from Bitcoin’s rising dominance. Ethereum, Binance Coin, Tron, Ripple, Bitcoin Cash, and Cardano have all seen declines ranging from 1% to 3.5% over the past day. More significant losses were recorded for SOL, DOGE, TON, AVAX, LINK, and SHIB, with the latter suffering a drop of up to 5.3%.

The steepest declines come from tokens like TIA (-14%), APT (-10%), MEW (-10%), KAS (-10%), AR (-10%), GALA (-10%), and JASMY (-9.5%).

In total, the cryptocurrency market capitalization has decreased to $2.37 trillion on CoinGecko, indicating a loss of approximately $70 billion within just one day.