Bitcoin recently saw its largest single-day drop in two weeks, falling over 7%, amidst a broader market sell-off that also affected other high-risk assets.
Despite this, Bitcoin still records a significant yearly gain, attributed to growing investor interest in US ETFs backed by Bitcoin holdings.
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- Bitcoin recorded its largest single-day drop in two weeks, plummeting over 7% to $62,500.
- Despite the decline, Bitcoin still maintains a 52% gain for the year, indicating continued investor interest.
- The broader crypto market shows signs of growth, with altcoins like Solana and Avalanche seeing significant gains.
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Recent Drop in BTC Price: What’s Happening?
Bitcoin recently experienced a significant decline, marking its largest single-day drop in two weeks, with a fall of over 7% – partially, BTC price drop was anticipated by some analysts previously.
This downturn is part of a larger trend that saw Bitcoin’s value decrease by nearly 9% over the previous week, representing the biggest week-on-week decline since last September.
Similarly, Ethereum also saw a 13% decrease after an upgrade to the Ethereum network.
Bitcoin Maintains Yearly Gains Despite Recent Drops
Despite this dip, Bitcoin has maintained a 52% gain for the year, largely fueled by increased interest in US exchange-traded funds (ETFs) that are backed by actual Bitcoin holdings.
Despite the fluctuations, this trend indicates a solid interest and investment in Bitcoin. At the moment of reporting, Bitcoin was down by 5.6% to $63,650 after touching a two-week low of $62,966.
Factors Influencing the Drop
The downturn coincided with a broader sell-off affecting cryptocurrencies and other high-risk assets, including stocks.
Last Thursday, Bitcoin had reached a record high of nearly $74,000, leading some investors to take profits. A series of US data releases suggested that the Federal Reserve might not cut interest rates as much as previously expected this year, influencing the market dynamics.
How Are Other Cryptos Performing?
While facing this downturn, the crypto market still shows growth areas.
Altcoins have seen their own share of investment inflows. For instance, Solana’s SOL token surged 19% in the past week, and Avalanche’s AVAX coin increased 17%.
What’s Next for BTC?
The cryptocurrency market remains highly volatile and influenced by various factors, including monetary policy shifts and global economic trends.
Investors and market observers continue to monitor these developments closely, with particular attention to the impacts of inflation, changes in interest rates, and the overall appetite for risk among investors.
