Bitcoin experienced a dramatic decline as it faltered at the six-digit milestone, plunging to $94,000 on Monday night. The altcoin market witnessed even sharper crashes, with many assets suffering double-digit losses before recovering partially.
On the heels of surpassing $101,000 on Sunday, Bitcoin soon found itself [retreating](draw a green frog dressed as a businessman with a glass of champagne watching PEPE skyrocketing on charts , cartoonish, comic style, yet realistic, yellow colors, horizontal) from the elusive $100,000 threshold. Despite MicroStrategy's announcement of another significant bitcoin acquisition, the cryptocurrency's value plummeted by approximately $6,000 within hours.
This marked its descent to $94,000 for the first time since last week's crash attributed to excessive leverage. Fortunately, Bitcoin quickly rebounded, reaching over $97,000. This sharp volatility was detrimental to over-leveraged traders, with over 500,000 participants facing severe losses, pushing the total value of liquidations to $1.6 billion, as per CoinGlass. Presently, Bitcoin's market capitalization has slipped to $1.930 trillion, although its market dominance has climbed to 53%, thanks to the severe downturn in altcoins.
In contrast, altcoins experienced a more pronounced decline than Bitcoin, although they managed a slight recovery later. Among the hardest-hit were BRETT (-14%), WIF (-13%), WLD (-13%), EOS (-12.5%), GALA (-12.3%), SAND (-12%), and TAO (-12%). Larger altcoins like ETH, SOL, and BNB saw reductions of around 3-4%. XRP dipped briefly below $2 during the turmoil but now stands at $2.2, yet it remains 7% lower for the day. While several altcoins exhibited significant declines, some are positioned to recover more swiftly, according to insights from Santiment.
The total cryptocurrency market capitalization fell from $3.9 trillion to well below $3.6 trillion, eventually stabilizing just above the latter. This reflects a daily decrease of $300 billion.
This downturn in the crypto market comes amid a broader narrative of uncertainty, as both BTC and altcoins continue to navigate turbulent times and volatile price movements.