Bitcoin continues to face volatility in the market, with the cryptocurrency tumbling below the $28,000 mark over the last twenty-four hours. Moreover, the altcoins, including the noteworthy gainer of yesterday, Binance Coin (BNB), are not faring any better, experiencing losses as well.
Last week, Bitcoin’s price bounced between $27,000 and $30,000, with swift movements in both directions. Despite the drama surrounding First Republic pushing the digital currency close to crossing $30,000, it ended up back at around $29,000 by the weekend. Late Sunday, Bitcoin’s price steadily increased, only to face another drop to $28,000 in a matter of minutes. At the time of writing, the price has stabilized somewhat, but not before hitting a six-day low of $27,650 at one point.
The upcoming Federal Open Market Committee (FOMC) meeting, where the Federal Reserve is anticipated to raise interest rates again, casts uncertainty over Bitcoin’s future. As a result, it seems likely that investors should brace for even more volatility in the near term.
Aside from Bitcoin, the rest of the cryptocurrency market is also experiencing turbulence. Ethereum’s value has struggled to stay above the $1,800 mark, even though it was above $1,900 just a day prior. Binance Coin, which managed to stay in the green yesterday, has lost 3% in value, bringing it down to below $325.
Other major altcoins such as Ripple, Cardano, Dogecoin, Polygon, Solana, Polkadot, Tron, Shiba Inu, and Avalanche have all experienced declines in their market value. Over the course of just two days, a staggering $50 billion has evaporated from the market, and the total crypto market cap now stands at $1.160 trillion.
Nonetheless, this widespread drop in value across the entire crypto market does not negate the revolutionary nature of blockchain technology. As these digital currencies continue to evolve and gain broader adoption, tackling the volatility issue will become increasingly important. Despite this, it is crucial for investors to keep in mind the long-term potential of cryptocurrencies and blockchain technology, even amid such fluctuations.
It is essential for investors to closely follow market trends, conduct thorough research, and exercise caution when making investment decisions with cryptocurrencies. And while the current bearish trend may be concerning, it is important to remember that the digital currency space is still in its infancy, and the road ahead is full of innovation and opportunity.
Source: CryptoPotato
