Altcoins Suffer Heavy Losses as Bitcoin Drops Below $59k
On August 28, 2024, the cryptocurrency market experienced a significant downturn as most altcoins saw double-digit drops while Bitcoin, the largest crypto asset, dropped 6% over the past day. This sharp decline in altcoin values was felt across various tokens, including Fantom (FTM), Sui (SUI), Artificial Superintelligence Alliance (FET), and Lido DAO (LDO).
Fantom, a scalable blockchain platform for DeFi, was down 14% in the last 24 hours, with a market cap of $1.219 billion. Sui, the native token of the Sui blockchain network, also dropped 11.8% to $0.8302, with a market cap of $2.16 billion. FET, a partnership between blockchain networks Fetch.ai, SingularityNET, and Ocean Protocol, saw a 13.7% decrease in the last 24 hours, trading at $1.22 with a market cap of $3 billion. Lido DAO experienced a 13% drop, trading at $1.04 with a market cap of $938 million.
The decline in altcoin values was largely attributed to Bitcoin’s performance, as the leading cryptocurrency fell below $59,000 on August 28. Bitcoin’s 24-hour lows and highs were recorded at $58,059 and $62,963, respectively. The Fear and Greed index indicated a state of fear in the crypto market, with a recent report from Glassnode suggesting that the market may be reaching a balanced state that could lead to further price fluctuations.
Analysts speculated that Bitcoin’s price drop could be linked to the escalating Russia-Ukraine conflict, with some suggesting that smart money is accumulating Bitcoin between $50,000 and $65,000 in anticipation of a breakout by the end of September. The Relative Strength Index for Bitcoin stood at 44.56, indicating that the cryptocurrency is neither oversold nor undervalued at its current price level.
Overall, the crypto market experienced more than $320 million in liquidations in the past day, with $285 million from long positions and $35 million from shorts being wiped out. Despite the recent downturn, some analysts believe that a short-term price rebound could be on the horizon for Bitcoin and the broader cryptocurrency market.
As investors navigate the volatile crypto landscape, it remains crucial to stay informed and monitor market trends to make informed decisions in the ever-changing world of digital assets.