Following the major Bitcoin conference and Donald Trump’s speech, cryptocurrencies, especially Bitcoin, started the week strong, with Bitcoin surpassing $70,000. However, just as expectations for further increases grew, the market suddenly reversed, leading to a significant crash. This decline affected not only cryptocurrencies but also the global economy. So, why are cryptocurrencies falling, and what is the current state of the market as the week ends?
Why Are Cryptocurrencies Falling?
The global economic downturn is believed to stem from a single event: tensions in the Middle East. The prevailing stress and war anxiety appear to have gripped all markets. Recent news about potential interest rate cuts by the U.S. in September and beyond couldn’t prevent this decline.
The drop has had a visibly negative impact on cryptocurrencies, with Bitcoin’s price falling from being just $3,500 away from its all-time high to being $13,000 away, fueling rumors of a deeper decline.
What Is Bitcoin’s Current Price?
Market uncertainties pulled Bitcoin’s price down to $60,500 in the early morning hours, followed by a slight recovery, with the price at $61,682 at the time of writing. This price reflects a 3.86% drop in the last 24 hours.
Bitcoin’s market cap is facing the possibility of falling below $1.2 trillion for the first time in a long period. Meanwhile, investors looking to minimize their losses have increased BTC’s trading volume. The trading volume rose by 17.63% in the last 24 hours, reaching $44.9 billion.
Meanwhile, Ethereum fell below $3,000 for the first time in 25 days. At the time of writing, Ethereum’s price is $2,972, reflecting a 5.47% drop. ETH’s trading volume increased by 25%, reaching $22.5 billion.
Lastly, Solana, known as the Ethereum killer, experienced a sharper decline compared to its rivals. SOL’s price dropped by 6.5%, reaching $151. SOL’s weekly decline exceeded 17%.
