Bitcoin’s (BTC) value dipped under the $25K mark on Monday, a level unseen in 88 days, pushing the global cryptocurrency market cap perilously close to falling below the $1 trillion benchmark. Presently, BTC is hovering just above the $25K mark at 2:00 p.m. Eastern Time on Monday afternoon.
A Tale of Two Markets: Bitcoin Drops Under $25K While Tesla Powers Equity Surge
The broader crypto market saw a 2.3% decline in the last 24 hours, with multiple digital currencies registering noticeable slumps. Bitcoin, the largest crypto asset by market cap, experienced a 2.2% drop within the day, while ethereum (ETH) plunged 4.4% after falling beneath the $1,600 mark.
Notably, Bitcoin’s descent under the $25K bracket is its first since June 15, 2023. For nearly three months, this digital asset displayed consolidation, albeit at reduced trading volumes. Rewinding to March 10, 2023, we see the last instance when the crypto realm dipped to, or under, the $1 trillion valuation.
During that period, BTC’s worth similarly plummeted below $25K. This downturn has been more pronounced since the U.S. Securities and Exchange Commission delayed its verdict on seven proposed bitcoin exchange-traded fund (ETF) applications. This particular news broke 11 days ago and has since dampened BTC’s momentum, exerting strain on the entire crypto ecosystem.
Data from the past 30 days reveals BTC depreciated by 14.6% against the U.S. dollar, and ETH declined by 15.7% for the month. Bitfinex’s recent Alpha Report indicates an exodus of around $55 billion from the crypto sector in August.
Etoro’s market analyst, Simon Peters, mentioned in a note to Bitcoin.com News, “Despite the first week of September arriving, the crypto market is still in the doldrums lacking signs of direction.” He further noted BTC “was broadly flat in the past seven days, down just 0.43% week-on-week.”
Contrarily, while the crypto sector grapples with turbulence, BTC bottomed at $24,957 on September 11, yet traditional equity markets flourish, with all four benchmark indices witnessing gains. Much of the stock market’s surge is credited to Tesla’s uptick following its upgrade by Morgan Stanley.
What do you think about bitcoin’s performance today and the crypto economy’s overall downturn? Share your thoughts and opinions about this subject in the comments section below.
via Jamie Redman
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