Bitcoin suffered a major setback as it tumbled by $1,000, wiping out gains from the weekend and turning the crypto market red. The unexpected drop happened after BTC was unable to break the $28,000 resistance level.
US Government Debt Deal Boosts Bitcoin
Over the weekend, bitcoin had rallied to a three-week high of $28,500 after the US government reached an agreement on the debt ceiling. This development had raised market confidence and buoyed the price of BTC. However, the inability to break the resistance level led to a sharp sell-off. Bitcoin is now trading at around $26,000.
Ethereum and Altcoins Dip too
Bitcoin’s sharp decline had a ripple effect across the crypto market. Ethereum, the second-largest cryptocurrency, slipped below $1,900 after a 1.3% dip. Most altcoins followed BTC’s path south, with Binance Coin down by a similar percentage, struggling to trade at $306.
Solana, Cardano, and other cryptocurrencies also dipped, with losses of up to 3% in a day. In contrast, QNT and GRT managed to post minor gains of up to 4%. Lido Dao suffered the most from the top 36 altcoins, declining by 6% and now trading below $2.1.
Investors Remain Bullish on Crypto
Despite the recent market dip, many investors and experts remain bullish on cryptocurrencies, citing their potential to usher in a new era of decentralized finance. Recent institutional investments in Bitcoin and Ethereum, as well as favorable regulatory decisions, have provided the cryptocurrency industry with a boost of confidence.
As cryptocurrencies continue to gain mainstream acceptance, market fluctuations like these could become more common. Investors need to remain vigilant and keep an eye on the market trends, if they truly hope to capitalize on the massive potential of cryptocurrencies.
