- Bitcoin and Ether observe significant drops, with smaller cryptos following suit.
- Binance’s service discontinuation, among other factors, triggers a broader market sell-off.
- Rising Bitcoin dominance may signal further challenges for altcoins.
In early Asian trading hours, major cryptocurrencies, Bitcoin and Ether, witnessed a slump. Bitcoin momentarily dipped below $28,500 while Ether plunged under the pivotal $1,800 threshold. Concurrently, smaller cryptocurrencies like Dogecoin, Solana, and Ripple felt the weight of a bearish market mood.
The ebb in Bitcoin saw a minor reversal after the July 2023 FOMC minutes showcased the Federal Reserve’s apprehensions about lingering inflationary pressures, hinting at potential measures. Additionally, the central authority emphasized the significance of treading carefully, avoiding extreme financial constrictions due to inherent risks.
Unpacking the Crypto Downtrend
Several elements have coalesced to drive the present downturn in the crypto market. Despite witnessing a fleeting uptick, the U.S. stock market grappled to retain its footing, reflecting a worldwide trend. Factors like fresh Chinese economic figures, rising bond yields, and stretched market assessments have collectively sowed seeds of uncertainty this week. And even as China’s central bank opted for a rate cut, the broader market sentiment remained largely unmoved.
A noteworthy trigger for the downturn was Binance’s announcement to halt its Binance Connect service. While the move was designed to streamline core offerings and align with long-term strategies, it inadvertently set off a comprehensive market retreat. The ramifications were amplified despite Binance Connect hosting a mere 50 cryptocurrencies.
Data from Coinglass unveiled that a staggering $129 million worth of cryptocurrencies were sold off in a single day. This frenzy led about 63,000 traders to quickly liquidate assets, with a prominent Ethereum (ETH) sale order reaching $2.34 million. Cryptos including Dogecoin, Litecoin, XRP, Solana, and Shiba Inu were particularly hard hit during this period.
Crypto pundits, such as Rekt Capital and Michael van de Poppe, foresee additional drops in crypto valuations. Meanwhile, Bitcoin’s escalating dominance, now accounting for over half the total crypto market value, paints a grim picture for its peers, hinting at more turbulence for altcoins.
Disclaimer : The content provided is for informational purposes only. It should not be considered financial or investment advice. Always consult with a professional before making any financial decisions.
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
