June 4, 2023

After the recent stagnation, Bitcoin finally started to move and fell to a six-week low below $20,000.

Most altcoins are also deep in the red. Ethereum fell to $1,500, while SOL, ADA and AVAX fell as much as 8% in a day.

Bitcoin falls below $20,000

Last week was especially bad for the major cryptocurrency, which fell from $25,200 to $21,000 in a matter of days. The asset calmed down amid heightened volatility and traded between $21,000 and $22,000 for much of the next day.

It tried to cancel the latter on Thursday, but was blocked. Hence, it was pushed down to $21,500 as reported yesterday.

However, Jerome Powell addressed the nation and reiterated the Fed’s previous statement about trying to bring inflation down to 2%. Although this has been mentioned several times in the past, it has had a direct impact on the price of BTC.

Within a few hours, Bitcoin plunged more than $1,000 and fell below $20,500. Things worsened earlier today, with BTC dropping below $20,000 for the first time since mid-July. Unexpectedly, this resulted in liquidations worth millions of dollars.

As of now, it has bounced back and traded above the coveted line, but its market cap has fallen below $400 billion.

Bitcoin dollar. Source: TradingView
bitcoin dollar. Source: TradingView

Alts see red

As usually happens when BTC heads south, so do most altcoins.

Ethereum has been the top performer until recently, likely driven by the hype surrounding the impending merger. As a result, ETH surged above $1,700 two days ago. Earlier today, however, the second-largest cryptocurrency fell below $1,500, losing more than $200 in that time.

Cardano was down 8.5% in a day, Solana was down 7% and Avalanche was down 8%. Binance Coin, Ripple, Dogecoin, Polkadot, Shiba Inu, and Polygon are also in deep losses, albeit less so.

Low- and mid-range altcoins are in a similarly unfavorable situation. As a result, the entire cryptocurrency market cap has evaporated by more than $80 billion in one day, falling below $1 trillion for the first time in nearly a month.

An overview of the cryptocurrency market.Source: Quantitative Encryption
An overview of the cryptocurrency market.Source: Quantitative Encryption
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