Bitcoin took a notable plunge following its all-time high (ATH) in March. Last week, its price plummeted to $58,500 before bouncing back to surpass $63,000. However, the current scenario appears grim as the market endured a staggering loss of over $130 billion, decreasing from $2.18 trillion to $2.05 trillion. Bitcoin is struggling to maintain its position around $58,000 as of now. Concurrently, the value of alternative cryptocurrencies, excluding BTC, also plunged by more than $60 billion.
**Key Points**
**Reasons Behind the Market Downturn**
The cryptocurrency realm is currently rife with heightened uncertainty. In the surge fueled by meme coins in March, some alternative coins reached their ATHs, while others traded flat, contributing to the existing turbulence.
**Bitcoin’s Ongoing Price**
After hitting its ATH in March, Bitcoin was poised for new peaks post-halving. However, it lingered around $67,000 for an extended period, diverging from its ATH of over $73,000 recorded in March.
Various factors are believed to have triggered the market’s price decline, exerting downward pressure. For instance, the daily stablecoin volume for Solana (SOL) plummeted by 90%, amidst speculations of potential litigation involving the coin. Additionally, concerns arose over the actions of the German and US governments, as they reportedly transferred acquired BTC to exchanges, fueling uncertainty.
The market was further unsettled by Mt. Gox’s announcement of commencing repayments to creditors in early July, an endeavor anticipated to amount to approximately $9 billion. Moreover, the fluctuating nature of the US economy continued to weigh on Bitcoin, with the recent Federal Reserve interest rate decision causing a drop in price to its current standing.
**Current Bitcoin Pricing**
At present, Bitcoin is holding ground at the $58,000 mark, with a decrease of about 3.81% in the past 24 hours. The market capitalization shrank to $1.146 trillion, accompanied by a 47% surge in trading volume to nearly $40 billion amidst prevalent selling pressure.
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**Disclaimer:**
This article is not intended as investment advice. Investors are urged to recognize the high volatility and risk associated with cryptocurrencies, conducting thorough research before making any investment decisions.
