The cryptocurrency market, particularly the world's largest cryptocurrency Bitcoin, experienced a significant downturn in the last 24 hours following a period of sharp rise. Bitcoin, which recently surpassed the historical milestone of $73,000, plummeted by approximately 8 percent within a day. This sudden decline led to losses totalling around $526 million in crypto bets.
After reaching its peak of $73,177 on Thursday, Bitcoin saw a notable drop to $67,689 on Friday, marking an 8.1 percent decrease. Similarly, Ethereum, the second-largest cryptocurrency, also experienced a decline of about 7 percent, falling to $3,708. The market witnessed substantial selling pressure, resulting in the highest volume of crypto sales in the past two weeks, as reported by Coin Glass data.
The recent surge in Bitcoin prices had been fuelled by increased investor interest following the approval of the Spot Bitcoin Exchange-Traded Fund (ETF) in the United States. However, concerns arose over the possibility of high interest rates persisting due to inflation data in America, contributing to the market downturn.
Despite the recent decline, Bitcoin had seen a remarkable overall increase of nearly 70 percent by the year 2024. Investors still managed to achieve significant returns, with gains of around 60 percent compared to the previous year. However, there remains apprehension among investors about the possibility of further declines, with predictions suggesting Bitcoin could drop to $58,000 to $59,000.
