Bitcoin, the world’s leading cryptocurrency, has plunged below the key support level of $62,500 today amidst a broad sell-off in the crypto market, marking one of the steepest weekly declines this year.
As of the latest data, Bitcoin is trading near its monthly low at approximately $62,490, reflecting a 6% drop over the past seven days. The downturn comes amid a six-day streak of outflows from US Bitcoin ETFs and increasing uncertainty surrounding global monetary policies.
Ethereum, the second-largest cryptocurrency by market capitalization, has also faced significant selling pressure, sliding over 6% in the last week. After touching nearly $4,000 earlier this month, Ethereum is currently priced at around $3,360 according to Coingecko data.
The Federal Reserve recently announced its decision to maintain its benchmark interest rate unchanged, signaling only one potential rate cut this year compared to earlier forecasts of three reductions. This adjustment reflects the Fed’s cautious optimism regarding inflation, which although showing signs of cooling, has not yet met the annual target of 2%.
High interest rates typically dampen the appeal of speculative assets like cryptocurrencies, contributing to the recent market downturn.
Correction Deepens in Major Altcoins
The broader cryptocurrency market has also witnessed a correction, with the total market capitalization decreasing to $2.39 trillion, down 3.5% in the last 24 hours alone. Major altcoins have been significantly impacted, with BNB down 6.6%, Solana down 16%, and XRP down 4% over the past seven days.
Telegram’s TON token, which had seen a strong performance recently, has retreated nearly 13% from its recent peak of $8.25 earlier this month.
Even meme coins such as Dogecoin, Shiba Inu, and PEPE have not been immune to the downturn, experiencing declines of 5%, 6%, and 11% respectively in the last 24 hours. Dogwifhat, in particular, has erased nearly half of its gains from the previous week.
Investors and analysts continue to monitor these developments closely as the crypto market navigates through this period of heightened volatility and regulatory scrutiny.
