Market Watch: Bitcoin Dips by $5K in a Single Day as Ethereum Falls Below $4,500
The cryptocurrency market takes a notable decline after a strong start to October, with Bitcoin and Ethereum seeing significant drops.
The cryptocurrency market, which had been booming since the start of October, experienced a significant setback in the last 24 hours.
Bitcoin (BTC) saw a brief drop below $121,000, while Ethereum (ETH) and several popular altcoins faced even more severe declines.
Bitcoin’s Decline
The start of the business week brought initial gains for Bitcoin, which reached an all-time high of over $126,000 on October 6. However, the momentum could not be sustained, leading to a downward trend in value.
Earlier today, Bitcoin dipped to a low of $120,700 before recovering to approximately $121,700, reflecting a daily decrease of 2%.
BTC Price, Source: CoinGecko
It remains uncertain whether this is a healthy correction or the start of a bearish trend. The sizeable inflow into Bitcoin ETFs and a declining amount of coins held on exchanges suggest the former might be more probable.
In light of the latest adjustments, Bitcoin’s market cap has fallen to around $2.42 trillion, with its dominance over altcoins holding steady at about 56.9%.
Ethereum’s Critical Support Break
Most leading altcoins mirrored Bitcoin’s trajectory. Ethereum (ETH) dropped by 5% over the past 24 hours, descending below the $4,500 mark. Likewise, Ripple’s XRP retraced by 4% to $2.86, while Solana (SOL) and Dogecoin (DOGE) saw decreases of 2-3%.
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Plasma (XPL) saw the largest decline among the top 100 cryptocurrencies with an 11% drop. World Liberty Financial (WLFI) and Pi Network (PI) followed closely with drops of 9% and 8%, respectively.
Nevertheless, some altcoins remain in positive territory, such as Binance Coin (BNB), which increased by 6% today, trading well above $1,300. According to sources, BNB has now become the third-largest cryptocurrency by market cap, surpassing Ripple’s XRP and Tether’s USDT.
The total market cap of the cryptocurrency sector has decreased by 2% over the past 24 hours, currently estimated at approximately $4.27 trillion.
Cryptocurrency Market Overview, Source: QuantifyCrypto
