The crypto market along the global stock markets are retracing to new monthly lows. Bitcoin visited intra day low below $40,000, and ETH fell as low as close to $2,700. Both have retraced some since.
As uncertainty within the global financial markets grows, bitcoin plunged by several thousand dollars in a day below $40,000. Altcoins suffered even more with massive double-digit price dumps, as they are usually the first to be sold when the market outlook is dark.
BTC Bottom at $40K?
The cryptocurrency market in the past 24 hours went through a brutal fall compared to the weekend just two days ago. While the trading volume was minimal, as investors were waiting what happens next. BTC was riding high above $48,000, which was an 11-day high.
As the fears of the Evergrande’s fall shook the global market hard on Monday, the crypto market also went down hard. In a matter of hours, it lost several thousand dollars and dumped to a low of $42,500.
Bitcoin managed to bounce back some initially and even reclaimed $44,000, but not for long. The bears took back control and this time dumped the asset all the way down to $40,200, and then further to $39,870 level.
This became the lowest price point since early August. As of now, bitcoin has recovered some ground and currently stands above $42,200. This enhanced volatility has led to more than $1.58 billion in liquidations in the past 24 hours, according to Bybt data.
The US financial markets also saw similar developments. The S&P 500 closed with a 2% decline, which became its worst trading day since May. Nevertheless, the futures contracts opened higher today ahead of the next Fed meeting.
ETH Fell Below $3K
The altcoins followed Bitcoin down with even more drastic price dumps. Ethereum was among the leaders in this adverse trend as it dropped from $3,400 to close to $2,700, which became its lowest level since August 6th.
As the time of writing, ETH has recovered some and trades at $2,880
On a 24-hour scale, Binance Coin (-3%), Ripple (-3%), Solana (-6%) Polkadot (-6%), Dogecoin (-3%), LUNA (-6%), Uniswap (-6%), Litecoin (-5%) and Chainlink (-6%) are still deep in red.
Avalanche, Elrond, Theta and Axie Infinity are the only ones in green from the top 36 larger-cap alts.