Bitcoin has taken a sharp dive below $62,500 today, marking one of the worst weekly drops for the entire cryptocurrency market this year. The leading digital currency is now trading at a monthly low of around $62,490 after six consecutive days of outflows from US Bitcoin ETFs and growing uncertainty surrounding monetary policies. The Bitcoin price has plummeted by 6% over the past seven days.
Ethereum, the second-largest cryptocurrency, has also experienced a decline of over 6% in the last week. At one point, ETH reached nearly $4,000 earlier this month before falling to $3,360 at the time of reporting, according to data from Coingecko.
The Federal Reserve recently announced that it would only cut its benchmark interest rate once this year, a significant change from its previous forecast of three reductions. The Fed has suggested that there are indications of inflation cooling down, but it has yet to reach the annual target of 2%.
The high interest rates have had an inverse effect on the cryptocurrency market, as the appeal of speculative, risk-driven assets like crypto diminishes during such times.
The correction has spread to all major altcoins, with the entire crypto market now valued at $2.39 trillion, reflecting a 3.5% correction in the last 24 hours alone. Top altcoins such as BNB, Solana, and XRP have experienced declines of 6.6%, 16%, and 4% respectively over the past seven days.
Telegram’s TON, which had been performing well recently, has also fallen by nearly 13% from its all-time high of $8.25, recorded earlier this month.
Even popular meme coins like Dogecoin, Shiba Inu, and PEPE have experienced declines of 5%, 6%, and 11% respectively in the last 24 hours. Dogwifhat has suffered the most, as it has already lost almost half of its gains from the past week.
Source: CoinGecko