Crypto Market Suffers $200 Billion Loss as Bitcoin, Ethereum, and XRP Drop Drastically
Over the weekend, the cryptocurrency market experienced a significant downturn, causing a $200 billion reduction in total market cap primarily due to major drops in Bitcoin, Ethereum, and XRP prices.
Bitcoin’s recent price fluctuations took a steep dive on Saturday, hitting a low of just over $75,000, marking its lowest value since April last year. Other cryptocurrencies such as Ethereum (ETH), Ripple (XRP), and SOL also suffered hefty losses, with some experiencing double-digit declines. Reports indicate that the total cryptocurrency market capitalisation plummeted by about $200 billion within a short time frame.
Bitcoin Falls to $75K
Last week was quite painful for Bitcoin, which first fell from $89,000 to a low of $86,000 at the start of last Sunday. After some recovery past the $90,000 mark leading up to the Federal Open Market Committee (FOMC) meeting, the asset started to decline again following the Fed’s decision to halt interest rate reductions. The trigger for the substantial drop appeared to be tensions in the Middle East as US Navy movements near Iran elevated concerns. Bitcoin subsequently dropped $9,000 in just several hours, reaching $81,000. Although it regained some ground on Friday, the downward trend resumed on Saturday. Bitcoin experienced sideways trading near the $83,000-$84,000 range before it fell sharply, crashing to approximately $75,000, resulting in a total loss of around $20,000 over two weeks.
Even though Bitcoin climbed back to around $79,000 at the time of reporting, it still stands 5% lower compared to the previous day, with its market cap dropping below $1.6 trillion and a dominance of 57.4% over other cryptocurrencies.
BTCUSD Feb 1
BTCUSD Feb 1. Source: TradingView
Alts Take a Hit
Ethereum fell significantly during the market downturn, dropping from around $2,800 to $2,250, while XRP plunged to a 14-month low at $1.50. This pattern of dramatic decreases was consistent across many altcoins, with modest rebounds occurring only in the past 12 hours. On the 24-hour scale, cryptocurrencies like SOL saw a 9% drop, XMR decreased by 10%, and other cryptocurrencies such as LTC, SUI, LINK, and DOGE experienced declines around 5%. A few exceptions, including RAIN, HYPE, and CC, managed to remain relatively unscathed.
Market Cap Overview
The total cryptocurrency market cap plummeted by $200 billion, falling to around $2.7 trillion.
