Cryptocurrencies Experience Second-Major Crash in 2024
Cryptocurrencies saw their second-largest weekly drop of 2024 as global investors pulled back from Bitcoin exchange-traded funds (ETFs).
According to Bloomberg, the top 100 cryptocurrencies fell by 5% over the past week, marking the sharpest decline since April. On Monday, Bitcoin fell below $63,000, its lowest level since May. This decline comes amid ongoing losses in the crypto market over the past six days, driven by uncertainty in US markets about potential interest rate cuts by the Federal Reserve. Investor demand has significantly decreased as a result, leading many to hold off on purchases until there is more clarity.
An expert noted that the current downturn is characterized by low volatility, reduced trading volumes, and imbalanced order books as prices test their lower boundaries.
Both Ethereum (ETH) and Solana have experienced substantial declines. ETH is enduring its longest streak of weekly losses since 2023, while Solana, previously popular among digital-asset hedge funds, is facing its steepest decline since 2022.
Bitcoin hit an all-time high of $73,798 in March but has lagged behind traditional assets like stocks, bonds, and gold in performance this quarter.
As of the latest update, Bitcoin was down 3.14% and trading at $62,375.
