The week was unfavorable for the virtual currency market as it recorded a sharp decline, with Bitcoin being the hardest hit. Dropping by more than 2% in an hour during the US trading session, the coin fell down to $65,100, its four-week low. This fall from the $67,000 level meant the asset had experienced a 7% decline in the past week.
Altcoins Suffer Greater Losses
Altcoins were not doing any better than Bitcoin and suffered worse losses. The CoinDesk 20, an index of leading coins, declined 11.7% since the previous Friday. Ether, the second largest cryptocurrency, also dropped by 2.7% and is now trading at $3,380.
Top altcoins, including Solana, Avalanche, Cardano, and Near, also recorded negative percentages of 15-20%, as they also followed the big red candle of BTC.
Market dynamics this week were harsh. Nearly $180 million in leveraged derivatives positions were liquidated over the past 24 hours, with the week totaling over $870 million. These corrections have effectively removed excess leverage from the markets.
Adding to the pressure, recent economic data and Federal Reserve projections did not align with investor expectations for a softer monetary policy, further dampening the market mood. Increased dollar strength and political uncertainties in Europe also contributed to the downturn, overshadowing earlier optimism for a Bitcoin rally.
Also Read: Why Bitcoin Is Falling Behind Nasdaq: Insights Revealed
