Cryptocurrency Market Tumbles: ETH, SOL, BNB, ADA Drop 5%-10%
The cryptocurrency market experienced a significant downturn, reversing gains from the recent October rally. Bitcoin, which had hovered around $110,000, fell sharply to $105,500 during early U.S. trading hours. This represents a 4% decrease over the past day and an 8% dip over the week. The total market capitalization dropped below $108,000 as digital assets faced mounting pressure.
Altcoin Declines: ETH, SOL, BNB, ADA
Altcoins suffered more substantial losses, with Ether plunging beneath $3,600. In the past 24 hours, ETH saw a decrease of 7%, culminating in a 14% drop over the week. Other prominent cryptocurrencies also faced declines:
- Solana (SOL): down 8%-10%
- BNB: down 8%-10%
- Cardano (ADA): down 8%-10%
- Dogecoin (DOGE): around $0.1743
This decline in cryptocurrency prices triggered widespread liquidations in derivatives markets, amounting to over $1 billion in leveraged trading positions, according to CoinGlass data.
Market Analysis and Future Predictions
Despite the recent downturn, some analysts maintain optimistic forecasts for Bitcoin. Tom Lee, co-founder and CIO of FundStrat Capital, expressed confidence on CNBC that Bitcoin could potentially surge to $200,000 by the end of the year. He also noted that Ethereum may reach $7,000 before 2026.
Lee highlighted that his firm, Bitmine, which is the largest corporate holder of ETH, has experienced a 7.5% decline amid the current sell-off. He stated, “Right now, fundamentals are leading prices in crypto, so eventually we consolidate and then we rally into year-end.”
Impact on Stock Market
The cryptocurrency market’s woes contrasted sharply with the stock market’s initial rise linked to a surge in AI-related deals. The Nasdaq opened sharply higher but gradually lost ground, now up just 0.4%. The DJIA experienced a decline of 0.5%.
Major cryptocurrency firms felt the effects as well. Circle (CRCL) shares fell by 7%, and Gemini (GEMI) was down 6%. Coinbase (COIN) and Marathon Digital (MARA) both dropped by 4%, while MicroStrategy (MSTR) slipped 3%. Trading platform Robinhood (HOOD) is set to report its third-quarter earnings this week amidst the ongoing turmoil.
