Crypto Market Carnage: Bitcoin ETF Rejection Led to $100 Billion Daily Loss

• The cryptocurrency market experienced extreme volatility as Bitcoin surged to a 21-month high at almost $46,000, only to plummet by nearly $5,000 within hours amid speculations of a spot BTC ETF rejection by the SEC.
• The broader crypto market, including major altcoins, suffered significant losses, resulting in a staggering $100 billion daily decline in the total market cap.

In a dramatic turn of events, the cryptocurrency market experienced a tumultuous ride as Bitcoin’s price surged to $46,000, only to plummet by nearly $5,000 in a single day. The rollercoaster ride left investors reeling and the broader crypto market in a sea of red.

Bitcoin’s Whirlwind: From $42,500 to a 21-Month High

As 2024 dawned, the cryptocurrency landscape seemed poised for a serene beginning. Bitcoin enthusiasts were hopeful for the approval of a spot BTC ETF in the United States. Bitcoin responded with enthusiasm, skyrocketing from $42,500 to a 21-month high of almost $46,000. However, the jubilation was short-lived as speculations emerged that the SEC might reject all pending applications.

Bitcoin’s 15th Birthday Bloodbath

Despite limited evidence supporting the rejection claims, the mere speculation triggered a massive sell-off. In a matter of hours, Bitcoin shed almost $5,000, plunging to $41,500 on Bitstamp. The incident unfolded on the 15th birthday of the pioneering cryptocurrency, leaving a trail of liquidations and erasing recent gains.

A Volatile Landscape and Altcoin Carnage

Bitcoin’s turbulence had a cascading effect on the broader crypto market. Altcoins, typically sensitive to Bitcoin’s fluctuations, found themselves buried in red. Ethereum, down over 6% in a single day, hovered just above $2,200. Binance Coin (BNB) suffered a swift drop from $330 to $300 before recovering slightly to stand above $320.

Other major altcoins, including Ripple, Solana, Cardano, Avalanche, Dogecoin, Polkadot, Polygon, and Chainlink, experienced even more significant losses, some plummeting by up to 12% as the crypto landscape turned painful.

The Aftermath: Market Cap Plunge and Dominance Dynamics

The total crypto market cap, soaring to a nearly 2-year high of $1.750 trillion before the debacle, witnessed a staggering $160 billion drop. Currently standing at $1.650 trillion on CoinMarketCap, the market cap has undergone a $100 billion daily loss. Bitcoin’s market capitalization sits at $840 billion, representing a decline, yet its dominance over altcoins has surged to 51.2%.

As the crypto community grapples with the aftermath of this wild ride, one thing is clear – the inherent volatility of the cryptocurrency market remains. Investors must stay vigilant, as market sentiments can shift rapidly, leaving fortunes made or lost in the blink of an eye.

The rejection rumors around the spot BTC ETF serve as a stark reminder of the fragility of the crypto landscape.