Bitcoin’s price took a dive to $66,000 early Tuesday, wiping out the gains made last week. This drop was attributed to the U.S. government moving $2 billion worth of bitcoin, sparking concerns about potential selling pressure. Solana’s SOL coin experienced a major 6% loss, reversing the gains from Monday, while Ether remained relatively strong despite recent outflows from newly-launched spot ETH ETFs. The market saw a 5% decrease in Bitcoin’s value in the past 24 hours, followed by a slight recovery, after the U.S. Marshals Service transferred a significant amount of BTC to new wallets.
Solana’s SOL token led the losses among major cryptocurrencies with a 6% drop, undoing the gains from the previous day. The surge in memecoin trading on the Solana network over the weekend resulted in increased on-chain trading volumes, surpassing Ethereum, the typical leader in trading volume. Other major cryptocurrencies also experienced losses along with Bitcoin’s decline, with Cardano’s ADA losing 5%, dogecoin (DOGE) and BNB Chain’s BNB falling by 4%, and XRP losing 3%. Despite the drop in value, Ether showed relative strength with only a 1% decline, despite the newly-launched spot ETH ETFs experiencing $97 million in net outflows on Monday.
Market analysts are warning of potential losses in the near future, attributing it to macroeconomic decisions and a lack of new catalysts in the market. The boost in the market seen last week was due to anticipation of Donald Trump’s speech at the Nashville Conference, where he was expected to mention Bitcoin as a strategic reserve asset. However, after Trump’s speech at the Bitcoin 2024 conference in Nashville, where he promised to fire SEC head Gary Gensler and create a strategic Bitcoin reserve if elected, optimism peaked on the 27th and led to a “sell the news” phase. This has left the market lacking new sources of optimism.
As interest rate decisions from three central banks – the Bank of Japan, Federal Reserve, and the Bank of England – are scheduled for Wednesday and Thursday, market observers are cautioning that this could lead to increased volatility in the crypto market. The uncertain future of Bitcoin and other major cryptocurrencies is causing traders to be wary of potential selling pressure and further losses. It remains to be seen how the market will react to these upcoming events and whether Bitcoin’s price will be able to recover from the recent dip.
