Cryptocurrencies Experience Second-Worst Crash of 2024

Cryptocurrencies faced their second-worst weekly decline of 2024, with global investors showing reduced interest in Bitcoin exchange-traded funds (ETFs). Over the past week, the top 100 cryptocurrencies fell by 5 percent, marking the market’s steepest drop since April, according to Bloomberg.

 

Bitcoin’s value dropped below $63,000 on Monday, hitting its lowest point since May. This decline continues as the crypto market suffers losses for the sixth consecutive day due to uncertainty in the US markets about potential interest rate cuts by the Federal Reserve. Investors are holding off on purchases, waiting for clearer guidance.

 

An expert noted the current slump is characterized by low volatility, soft trading volumes, and imbalanced order books as prices near their range boundaries. Ethereum (ETH) and Solana are experiencing significant devaluations, with ETH enduring its longest run of weekly declines since 2023 and Solana facing its worst downturn since 2022.

 

Bitcoin, which reached an all-time high of $73,798 in March, has underperformed compared to traditional assets like stocks, bonds, and gold this quarter. At the time of reporting, Bitcoin was down 3.14 percent, trading at $62,375.