The last 24 hours have been challenging for cryptocurrency investors as the market suffered a significant downturn.

Bitcoin’s price unexpectedly fell to around $85,100, with several prominent altcoins also facing severe declines. Notably, Aster (ASTER) dropped by 12%, and Ondo (ONDO) also saw substantial losses.

Bitcoin in Decline

Bitcoin, which had recently stabilized at approximately $90,000, took a sharp downturn, dropping to a two-week low ceiling at nearly $85,000. Although there appeared to be no immediate catalyst for this sell-off, closer analysis reveals possible implications.

A contributing factor may be the unlikelihood of pro-crypto Kevin Hassett being appointed as the new Chairman of the Federal Reserve. Current speculation suggests that Kevin Warsh is favored, who holds a more cautious stance towards cryptocurrency and advocates for a central bank digital currency (CBDC) within the U.S.

After hitting a low of around $85,100, it seems buyers regained some confidence, with Bitcoin currently trading around $86,300.

BTC Price BTC Price, Source: TradingView

Following this dramatic decrease, Bitcoin’s market capitalization plummeted to roughly $1.72 trillion, maintaining a dominance of 59.2% over other cryptocurrencies.

Altcoins Experience Greater Losses

As is usually the case, altcoins mirrored Bitcoin’s decline, with many suffering even more significant losses. Aster (ASTER) suffered a 12% dip, settling around $0.81. Other cryptocurrencies such as Midnight (NIGHT), Pump.fun (PUMP), and Worldcoin (WLD) also faced considerable declines.

In contrast, among the few altcoins showing growth are Canton (CC), Provenance Hash (HASH), and Monero (XMR), each achieving slight increases of 1% to 2%.

The overall market capitalization for cryptocurrencies has decreased to about $3.03 trillion, reflecting a 4.1% drop in the past day.

Market Overview Cryptocurrency Market Overview, Source: QuantifyCrypto