Cryptocurrency Markets Lose $40 Billion as Bitcoin Drops to 10-Day Low: Weekend Watch

Bitcoin did not respond well to the latest PCE data coming in from the US and fell by nearly a thousand to a ten-day low.

Altcoins are also deep in the red with the most significant losses coming from MATIC, DOT, UNI and others.

Bitcoin dropped to $23,000

The end of last week was much better than this as BTC skyrocketed into double digits to a six-month high above $25,000. At first, he failed to decisively beat this line, but he kept trying. However, all three attempts met with swift rejection.

The last one to come in mid-week pushed the cryptocurrency south to $23,500. The bulls tried to intercept the move and brought bitcoin back above $24,000 later. Assets seemed to have calmed down around that level, but the landscape changed when the US announced that its PCE inflation index had increased by 0.6% in January.

Bitcoin responded with a sharp drop in price that took it from $24,000 to just under $23,000. Thus, the asset reached its lowest price in ten days.

It is trading just a few inches above $23,000 at the moment, but its market capitalization is struggling below $450 billion. Its dominance over alts is rather stagnant at 42.1% on CMC.

BTCUSD.  Source: TradingView
BTCUSD. Source: TradingView

Altcoins see red

As is usually the case, when bitcoin has increased volatility, altcoins feel it even more strongly.

Ethereum is down 3% on the day and is struggling to hold above $1,600. Binance Coin has fallen by a similar percentage to $300. Cardano, Ripple, OKB, Dogecoin, Solana, Shiba Inu and Litecoin are also in the red, losing up to 5% per day.

Those that are now down more than 5% include Polygon, Polkadot, Avalanche, Uniswap, Chainlink, Filecoin and many more.

As such, it is no surprise that the cumulative market capitalization of all crypto assets has dropped to $1.060 trillion after losing $40 billion in one day.

Cryptocurrency market overview.  Source: Quantify Crypto
Cryptocurrency market overview. Source: Quantify Crypto
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Cryptocurrency charts from TradingView.

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