Late Tuesday, the price of the largest cryptocurrency Bitcoin (BTC) dropped to below $60,000 from its $63,000 session high and has remained at this level.
Although no major reason can be attributed to the fall, a likely cause could be the recent comment from Fed Chair Jay Powell, where he promised to slash the interest rate.
Last week, at the Jackson Hole forum, Powell mentioned that interest rate cuts are coming in September. And BTC is so sensitive to movements in interest rates.
This possibly created fear in investors who quickly moved on to profit-taking.
Another possible reason why Bitcoin dropped by over $4,000 in less than a day could be RFK’s endorsement of Donald Trump.
This fresh drop surprisingly sent BTC deeper into a monthly loss. At the time of writing, a Bitcoin token is trading at about $59,500, which is about a 9% drop from its initial price just three trading days ago.Â
Since March when the price of Bitcoin hit a record of above $73,000, the price of the largest crypto has been fluctuating monthly, alternating between losses and wins.
Last Saturday, Bitcoin was trading slightly below the $65,000 benchmark. Although it dropped slightly on Sunday, it retraced on Monday morning, slightly exceeding the $65,000 mark for the first time in 3 weeks.
Bitcoin didn’t hold this position for too long before it started to lose hold.
Yesterday, it dropped to about $63,000, from where the bears completely took control, giving the token a massive fall to a low of $58,100. The massive drop leftover $320M in liquidations.Â
Although Bitcoin is recovering and is currently trading at a higher rate, it is still over 5.5% down from its initial price.
Other Cryptos Also In Red
Ethereum (ETH), the second-largest cryptocurrency, also experienced a fall as its price dropped by about 9% on Tuesday to below $2,500 from almost $2,800.Â
Despite the launch of 9 spot Ethereum ETFs, the token is on its third straight losing month with a total loss of about 35%.Â
Solana (SOL) also dropped to $145 while Avalanche (AVAX), Shiba Inu (SHIB), Dogecoin (DOGE), Bitcoin Cash (BCH), Uniswap (UNI), and NEAR also recorded similar losses.
As expected, several meme coins were also hit by the blow.
As of the time of writing, the cumulative market capitalization of all cryptocurrencies has dropped to $2.170 Trillion, showing that about $130B has been dumped since yesterday and over $200B since Monday.
