Cryptocurrency market shows volatility amid bitcoin and altcoins plunge
Cryptocurrency market shows volatility amid bitcoin and altcoins plunge
The cryptocurrency market is experiencing significant turbulence with bitcoin and several altcoins falling sharply. The bitcoin exchange rate collapsed to $65,000, losing key support levels and causing concern among investors and analysts.
This sharp drop followed a rare period of relative calm, suggesting that a major move was on the horizon.
The bearish trend extends not only to bitcoin, but to the entire cryptocurrency market, CoinGape reported. Ethereum is down 5%, while Cardano and Shiba Inu have hit their lowest levels since 2024. The altcoin market is experiencing a bloodbath, with token prices falling by double digits.
Amid this downturn, there are some positives. According to information published by Crypto.News, VanEck has successfully launched Australia's first spot bitcoin-ETF, marking a major milestone for the cryptocurrency industry. The move is seen as a step towards wider institutional acceptance and recognition of bitcoin.
The sharp decline in bitcoin and other cryptocurrencies has been attributed to various factors including market sentiment, macroeconomic conditions and technical indicators. The head of CryptoQuant warned that a loss of the $60,000 support level could lead to further declines and increased bearish sentiment.
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Despite the current market downturn, crypto experts believe that bitcoin's resilience and its historical performance during similar periods point to recovery potential. Analysts at On-chain note that the recent period of calm that preceded the decline may indicate a build-up of significant activity in the market, which could lead to a rebound.
It is worth noting that the coming weeks will be crucial in determining whether the market will be able to recover or whether it will fall further.
At the same time, the launch of new financial products such as the VanEck Bitcoin ETF could play a crucial role in shaping investor sentiment and market dynamics.
While the near-term outlook for the cryptocurrency market looks challenging, analysts believe that the long-term outlook is more positive and remains linked to broader adoption trends and the regulatory environment.
At the time of writing, BTC is trading at $65,758, showing a decline of 0.90% over the past 24 hours.
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