Cryptos Plunge Amidst Bad News, Bitcoin Drops To $25.4k

Cryptocurrencies plunged more than 6 percent in the past 24 hours amidst renewed anxiety about interest rate hikes as well as a string of bad news concerning the crypto industry. News of SEC getting permission to file an interlocutory appeal in its dispute with Ripple Labs, China’s property giant China Evergrande filing for bankruptcy, rumors of SpaceX dumping Bitcoin holdings and outage in the Shibarium network, all exacerbated the negative sentiment triggered by the Fed’s hawkish persistence on inflation control.

The minutes of the FOMC released on Wednesday had stirred up anxiety about further rate hikes amidst the Fed’s persistent focus on inflation combat. Surging bond yields added to the cautious sentiment regarding monetary policy outlook.

The deepening property crisis in China and the Evergrande Group filing for bankruptcy protection in a U.S. court also dampened crypto market sentiment.

Overall crypto market capitalization dropped to a low of $1.04 trillion in the past 24 hours before recovering to its current level of $1.06 trillion. The overnight decline is currently 6.23 percent.

Bitcoin dropped to a low of $25,409.11 and is currently trading at $26,464.26, registering a whopping 24-hour loss of 7.2 percent. The leading cryptocurrency has shed 10 percent during the past week, dragging year-to-date gains to a little less than 59 percent. Bitcoin’s crypto market dominance dropped to 48.46 percent, from 48.98 percent a day earlier.

The sudden and massive dip in the price of Bitcoin comes amidst rumors of SpaceX dumping its Bitcoin holdings. However, it is not immediately known whether the unconfirmed reports refer to a recent sale or something that happened much earlier. Some reports have also termed the reports as fake, adding to the FUD surrounding the development.

Ethereum shed 5.6 percent overnight and 8.8 percent over the past week to trade at $1,685.91. Year-to-date gains have fallen to 40 percent. Ether had touched a low of $1,551.71 earlier in the trade. The flash crash comes amidst rising expectations of the SEC approving Ethereum Futures linked ETF products. Despite the market turbulence, Ether managed to maintain its crypto market dominance at close to 19 percent.

4th ranked BNB (BNB) shed 5 percent overnight dragging its year-to-date losses to 10.5 percent. The cryptocurrency has shed 8.9 percent over the past week.

5th ranked XRP (XRP) plunged 13 percent overnight amidst the SEC being granted permission to file an interlocutory appeal against the earlier ruling that provided a partial win to Ripple Labs. XRP is currently trading at $0.5077, recovering from the 24-hour low of $0.4681, not far from the pre-court ruling price of $0.4711. Ripple Labs has been allowed time until September 1 to file its opposition to SEC’s appeal.

7th ranked Cardano (ADA) dropped 3.5 percent overnight but is still holding on to year-to-date gains of 5.8 percent.

8th ranked Solana (SOL) shed 4.6 percent overnight and tops year-to-date gains in the top-10 category with a 119 percent surge.

9th ranked Dogecoin (DOGE) dropped 6 percent overnight leading to losses of 11 percent in 2023.

TRON (TRX) maintained the tenth rank overall despite an overnight decline of close to 2.5 percent that dragged down year-to-date gains to 33 percent.

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