On Monday, Bitcoin and Ethereum experienced a sharp drop in value, with Bitcoin falling below $41,000 and Ethereum dropping below $2,200. This decline comes after both cryptocurrencies rallied for the better part of two months.
Bitcoin is currently trading at $40,758, down 7% in the past day, with over $330 million in crypto futures contracts being liquidated as BTC fell below $43,000. Despite the recent dip, Bitcoin is still 5% higher than it was at the beginning of the month when it was trading at $38,688.
Ethereum has also seen a 7% decrease since yesterday, currently trading for $2,185, but like Bitcoin, it remains 7% higher than it was at the start of the month.
The global crypto market capitalization has fallen by 6% since yesterday, now sitting at $1.6 trillion.
In the altcoin market, ORDI and Pepecoin have seen significant decreases in value, while Solana and Avalanche have attracted deposits from institutional investors.
Additionally, Binance USD experienced a temporary loss of its peg on Monday while also announcing that it will be converted to FDUSD, a stablecoin issued by FD121 Ltd, after Binance stops support.
This recent market turbulence may be a result of BUSD margin trading and futures contracts being automatically closed, as well as ongoing developments related to regulatory concerns and stablecoin operations.
Bitcoin and Ethereum’s recent price drops reflect the volatility of the crypto market, which has captivated investors and traders for years. Despite the current downturn, the overall trend for both cryptocurrencies over the long term has been largely positive.
Historically, both Bitcoin and Ethereum have experienced significant price volatility, with both assets having experienced major bull runs and subsequent corrections. The current downturn may be a natural part of the market cycle and could present buying opportunities for long-term investors.
