The cryptocurrency market has experienced another wave of volatility in the past 24 hours. Bitcoin (BTC) fell as low as $80,000 before buyers recovered some of their losses.
Altcoins have also followed the negative performance of the major digital asset, with many of them recording significant drops.
Despite experiencing small spikes, Bitcoin has continued to trend down over the past few days. BTC price held around $86,000 over the weekend, but with the start of the new week, investors have taken another big hit.
A few hours ago, BTC dropped to $80,000, causing millions of dollars worth of liquidity in the past 24 hours. However, the asset has recovered slightly and is now approaching $84,000, according to CoinGecko data.
High volatility is expected to continue in the short term due to several important upcoming events. Among them is the latest US Consumer Price Index (CPI) report scheduled for March 12. The report will reveal the inflation rate in the world’s largest economy, which could potentially trigger an interest rate adjustment by the Federal Reserve. History shows that such moves often impact BTC’s price performance.
Currently, Bitcoin’s market cap is around $1.66 trillion, with altcoin dominance remaining at 58.1%, almost the same as on March 9.
Altcoins have also seen a big drop. Ethereum (ETH) fell to a multi-year low below $2,000, before recovering slightly and is now worth around $2,120.
Ripple (XRP), Solana (SOL), Dogecoin (DOGE), Litecoin (LTC), Toncoin (TON), and many others also performed poorly. Meanwhile, Pi Network (PI) continued to decline to $1.43, representing a 14% drop in a week.
However, several cryptocurrencies in the top 100 list managed to post gains in the past 24 hours, including Ethena (ENA), Aave (AAVE), and Story (IP).
The total cryptocurrency market capitalization is now around $2.82 trillion, reflecting a 5% drop in one day.
