The past 24 hours brought some more pain for the bulls as BTC slipped to another three-week low at under $21,500.
Most altcoins are in no better shape, including the ETH liquid staking coins, many of which have seen double-digit price drops.
BTC Drops Again
The start of the month was highly positive for the primary cryptocurrency, which pumped to $24,200 after the latest interest rate hike by the US Federal Reserve on February 2. However, the landscape changed in the following days, and the asset retraced to around $23,000.
After sitting quietly there for a while, bitcoin started to lose value rapidly at the end of this week once the US SEC intensified its clampdown on crypto staking. While industry experts continue to weigh in on how these regulatory actions will affect the market, BTC slumped below $22,000 yesterday and fell to under $21,500 today.
The latter became its lowest price tag since January 20. As of now, the cryptocurrency trades a few hundred dollars above that line, but its market cap is under $420 billion. Its dominance over the alts stands still at 41.4%.
ETH Liquid Staking Alts Dump Hard
Some of the biggest gainers for the past few days were precisely ETH liquid staking altcoins, such as LDO, FXS, and RPL. However, they have retraced hard after the SEC’s actions, and all three are down by over 10% in the past 24 hours alone.
The larger-cap alts are calmer today, even though most are in the red as well. Ethereum is down by 2% and sits just inches above $1,500. Ripple, Cardano, Dogecoin, Polygon, Solana, and Polkadot are also with minor losses now.
Binance Coin, OKB, Shiba Inu, and Litecoin, on the other hand, have marked insignificant gains.
HBAR is among the few impressive gainers on a daily scale, surging by over 16% to $0.09.
The total crypto market cap has remained stuck at around $1.01 trillion after losing $70 billion in the past two days.
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Cryptocurrency charts by TradingView.
On Monday, a dramatic selloff of Bitcoin sent the digital currency plummeting to its lowest level in three weeks, creating an overall negative trend for the cryptocurrency market throughout the weekend. Also, the leading decentralized oracle service, Chainlink (LINK), saw a 14% drop in the value of its token, LINK_DO (LDO).
The selloff of Bitcoin began late Sunday afternoon, with the cryptocurrency dropping from its recently established all-time high of nearly $63,000 to a low of around $58,000 on Monday morning. The primary cause of the dump appears to be uncertainty about the passing of the $1.9 trillion stimulus package in the United States, which became a reality later in the same day.
The deeper the dive in Bitcoin prices, the larger the drag on LINK_DO, resulting in a 14% drop of its price. LINK_DO’s main purpose is to provide price feeds for decentralized applications.
Despite the weekend’s losses, analysts remain optimistic that the market will find steady footing in the wake of the stimulus. While Monday’s losses show that the markets are not immune to market volatility, a bullish case can still be made for Bitcoin, as well as other digital currencies in the long-term. The dip also gives long-term investors an opportunity to purchase cryptocurrency at a lower price than they would have before the big selloff.
The pullback this past weekend serves as a reminder of the importance of hedging risk in order to safeguard investments and limit the damage done by any potential downturns.