Crypto Markets Plunge $300B as Bitcoin Drops Below $62K

Crypto Markets Plunge, Bitcoin Tumbles Below $62,000

Cryptocurrency markets experienced a dramatic downturn over the weekend, defying expectations of a quiet period and handing complete control to bearish forces. Bitcoin spearheaded the sharp decline, crashing to $62,000, a level not witnessed in approximately three months. Altcoins followed suit, suffering significant losses, with XRP hitting a two-year low.

This substantial drop comes after Bitcoin’s retreat from a local peak of $81,000 on November 4, following the conclusion of the US midterm elections. The cryptocurrency’s decline began shortly after this high, falling below $76,000. After a minor dip to under $75,000 on November 7, Bitcoin traded sideways near $76,000 throughout the previous weekend.

The week began with a drop to $73,500 on Monday morning, and a subsequent attempt at recovery faltered. Bitcoin then fell below $73,000 on Tuesday, coinciding with the release of hotter-than-expected US CPI data. Another recovery attempt on Thursday was capped at $74,800, and the asset has been on a consistent downward trajectory since.

By Friday morning, Bitcoin had lost the critical $70,000 support level. It plunged below $68,000 mid-day before a brief rebound to $70,000, which was quickly rejected. Further losses ensued on Saturday, with the cryptocurrency experiencing several consecutive downward movements, culminating in a sharp fall to $62,000, its lowest point since mid-August.

Potential Factors Behind the Sell-off

While Bitcoin has since recovered a few thousand dollars, it remains well below the $65,000 mark. Its market capitalization has shrunk to $1.3 trillion, and its dominance over altcoins has decreased by 1% to 59.3% on CoinMarketCap.

Altcoins Suffer Steep Losses

The altcoin market is also deep in the red. Ethereum (ETH) has fallen to $1,800, marking a 6% decline in the past 24 hours. XRP dropped to $0.90 earlier today and is struggling to stay above $1.00 despite a minor bounce. Other cryptocurrencies, including Solana (SOL), HYPE, Monero (XMR), Dogecoin (DOGE), Chainlink (LINK), and Cardano (ADA), have posted losses of up to 8%.

Further down the list, Avalanche (AVAX) has tanked by over 11.5%. PUMP has plunged by nearly 15%, while Polkadot (DOT) and MORPHO are down by more than 9%.

The total market capitalization of cryptocurrencies has erased over $300 billion since Thursday, now standing well under $2.2 trillion on CoinMarketCap.