The cryptocurrency market is experiencing a period of extreme volatility, with Bitcoin and many top altcoins recording significant losses over the past 24 hours. According to data from CoinGecko, the total cryptocurrency market capitalization has decreased by 2.8% to $2.325 trillion.
Bitcoin (BTC), the world's largest cryptocurrency, fell 1.8% over the past 24 hours, trading around $63,285.90. However, Bitcoin still managed to maintain a 2.1% gain over the past week.
Many altcoins were also under heavy selling pressure. Ethereum (ETH) fell 2.0% to $2,595.45. Binance Coin (BNB) fell 3.0% to $588.17. Several other altcoins also recorded significant losses, including Cardano (ADA) (-1.5%), Chainlink (LINK) (-1.7%), Dogecoin (DOGE) (-1.7%), Solana (SOL) (-1.8%), XRP (-1.9%).
Strongest growth: Seamless Protocol (87.4%), Toshi (58.0%), Billy (40.8%).
Biggest decrease: Popcat (-7.3%), Fantom (-8.7%).
Total market trading volume: 81.651 billion USD in the last 24 hours.
This downward adjustment can be explained by several factors:
Taking profits: After a period of strong growth, many investors may take profits, putting selling pressure on the market.
Cautious sentiment: Investors are more cautious about the fluctuations in global financial markets.
Technical factors: Some technical indicators show that the market is in overbought territory, signaling the possibility of a downward correction.
Despite the market correction, many analysts remain optimistic about the long-term prospects of cryptocurrencies. Increased adoption from institutions and retail investors, coupled with the growth of DeFi applications and NFTs, are expected to continue to drive market growth. However, investors need to be cautious and manage risks effectively during this volatile period.
