Bitcoin, the world’s most popular cryptocurrency, experienced a rollercoaster ride over the Christmas holidays. After reaching a high of $43,000, its value took a major hit in the past 24 hours, dropping well below this level. And it’s not just Bitcoin; most altcoins are also facing a slight downturn, with a few exceptions.
Bitcoin’s Struggles
Bitcoin had been performing exceptionally well in the previous weeks. It seemed to have finally overcome the $44,000 level, which it hadn’t been able to do for almost two years. However, bears began to exert pressure on the market, causing Bitcoin to slip further and even drop to $42,600. Although it quickly recovered and approached $44,000 again, the landscape changed once more for the worse within the last 24 hours.
As a result of the market pressure, Bitcoin experienced a significant drop of nearly $1,000, reaching a six-day low of $42,500 on Bitstamp. While it has recovered slightly since then, Bitcoin is still trading 1% lower than the previous day, well below the $43,000 mark. Additionally, its market capitalization has decreased to $835 billion, with its dominance over altcoins falling to 50.5%.
Solana, one of the larger-cap cryptocurrencies, has been performing exceptionally well recently. In the past day alone, its native token has gained an additional 3.5%, reaching a value well above $110. Solana now surpasses Binance Coin (BNB) as the fourth-largest digital currency in terms of market capitalization, with BNB itself experiencing a 5% surge and trading at $275.
While a few altcoins, like Solana and Binance Coin, have seen positive growth, others are facing minor losses or insignificant gains. Cryptocurrencies such as Ethereum (ETH), Ripple (XRP), TRON (TRX), Dogecoin (DOGE), and Chainlink (LINK) fall into these categories.
Amidst the mixed performance of altcoins, some smaller projects have experienced significant price gains. SATS has surged by an impressive 20%, followed by Sei (17%), Sui (15%), ORDI (13%), and NEAR Protocol (13%).
Decline in Total Market Cap
Despite the individual fluctuations within the cryptocurrency market, the total market capitalization has dropped by approximately $30 billion since its peak the previous day. This decrease brings the current market cap to 1.650T, according to CoinMarketCap.
Volatility remains a defining characteristic of the cryptocurrency market, with Bitcoin leading the way. While it managed to reach new highs during the Christmas holidays, it quickly faced a sharp downturn. Meanwhile, altcoins have experienced a mixed performance, with Solana and Binance Coin standing out as notable gainers. As the cryptocurrency market continues to evolve, investors must remain cautious and expect significant fluctuations in value.