Mar 20, 2024
The image shows an illustration of Bitcoin. — Pixabay
In an unfortunate series of events in the cryptocurrency landscape, bitcoin (BTC) on Tuesday dropped over 6%, seemingly heading towards its biggest single day plunge.
The sudden markdowns incurred upon the world's biggest cryptocurrency have emerged after hitting its historic high as a result of its gradual climb during the past two weeks.
In its previous session, bitcoin was down 5.86% at $63,419, following its dip to a two-week low of $62,966, and ether plunged 6.39% to $3,283.
Read more: Bitcoin price: Here's WHY world's largest cryptocurrency is reaching historic levels
"In light of bitcoin's recent all-time high and subsequent correction, we anticipate a period of market recalibration as investors seek equilibrium amidst unprecedented inflows into spot bitcoin ETFs," analysts at exchange Bitfinex said in a note.
Despite reeling with significant loses, the most traded cryptocurrency still has left some shine after having risen 52% in 2024 so far. This comes reportedly as a result of rising number of investors into the exchange-traded funds (ETFs) listed in the US.
Bitcoin surged to its record high of approximately $74,000 on Thursday last week, which prompted profit taking alongside US-based date releases suggesting that the interest rates won't see the reduction that was expected from by Federal Reserve.
During last week, BTC observed a drop of nearly 9%, about to touch its largest week-on-week decline since last September, as ether lost 13% after an upgrade to the inherent ethereum network.
Trivial competitors in the crypto sphere such as smaller tokens, AKA altcoins, saw considerable inflows. Meanwhile, the solana network's sol token gained 19% during previous week, with avalanche's avax coin cheering up on 17% gain, as per the data released by Coingecko.
Led by the immense interest from investors into machine-learning, cryptocurrencies associated with AI-related projects have increased with tech stocks like Nvidia.
