Amid the growing uncertainty within the global financial markets, bitcoin slumped by several thousand dollars in a day to just over $40,000. The alternative coins suffered even more with massive double-digit price dumps.

Did Bitcoin Bottom at $40K?

Very little could have foreseen what transpired in the cryptocurrency market in the past 24 hours if one examined the weekend just two days ago. The trading volume was minimal, but BTC was riding high above $48,000, which was an 11-day high.

However, as the fears of the Evergrande saga enhanced on Monday, the cryptocurrency went down hard. In a matter of hours, it lost several thousand dollars and dumped to a low of $42,500.

It managed to bounce off initially and even reclaimed $44,000, but it was short-lived. The bears took back control and this time dumped the asset all the way down to $40,200 (on Bitstamp).

This became the lowest price point since early August. As of now, bitcoin has recovered some ground and currently stands above $43,000. This enhanced volatility has led to more than $1.2 billion in liquidations in the past 24 hours, according to Bybt.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

The losses are not evident only in the cryptocurrency space, though. The US financial markets also saw similar developments. The S&P 500 closed with a 2% decline, which became its worst trading day since May. Nevertheless, the futures contracts opened higher today ahead of the next Fed meeting.

ETH Dumped Below $3K

The alternative coins followed their leader south with even more vigorous price dumps. Ethereum was among the leaders in this adverse trend as it dropped from $3,400 to $2,800, which became its lowest level since August 6th.

As of now, ETH has recovered nearly $300 of value and stands above $3,000. On a 24-hour scale, Binance Coin (-4%), Ripple (-2%), Polkadot (-4%), Dogecoin (-4%), AVAX (-2.5%), LUNA (-7%), Uniswap (-5%), and Chainlink (-6%) are still deep in red.

Cardano and Solana are the only ones slightly in green from the larger-cap alts.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

OMG Network and Celo have marked impressive increases since yesterday with 27% and 17%, respectively. Cosmos, Audius, NEAR Protocol, Decred, Huobi Token, Mdex, Decentraland, Perpetual Protocol, THORChain, and more, though, are still well in the red.

The cryptocurrency market cap briefly dopped below $1.8 trillion yesterday. This meant a daily loss of over $300 billion and roughly $400 billion since Sunday.


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Cryptocurrency charts by TradingView.