Following the US Fed Chair speech yesterday, the crypto market cap dipped below $1 trillion. After trading in a straight line for a while, Bitcoin finally dropped below the $21,000 mark recording a 6-week low below $20,000.
All altcoins are trading in the red zone with ETH below $1,500. AVAX, ADA, and SOL Ave dipped by about 8% in the past 24 hours.
Bitcoin Drops Below The $20,000 Price Level
Last week, Bitcoin had a rough time as the cryptocurrency dropped from about $25,210 to $21,000 within a few days. After that huge fluctuation, the coin remained stable, trading between the $21,000 and $22,000 price levels.
On August 25th, it attempted to climb up but was unsuccessful. As a result, it was reduced once again to $21,500 yesterday.
Yesterday, Jerome Powell, the US Fed Chair, briefed the country and reaffirmed the Fed’s prior decision to bring inflation down to 2%. Even if this has been repeated many times before, it immediately affected the price of BTC.
Within a few hours, the number one cryptocurrency, BTC, lost over $1,000 after trading above $21,000 in the past week. The currency then dipped below $20,500 while sustaining support above $20,000.
However, the situation got worse on August 27th as BTC’ dropped below $20,000. Since mid-July, the currency has been trading above $20,000.
Altcoins Enter The Red Region
Consequently, millions of dollars left the market after BTC dropped. Meanwhile, the currency has maintained momentum and has climbed above $20,000. As of the time of writing, the coin was trading at about $20,080.
Usually, whenever Bitcoin dips, the rest of the crypto market follows suit. The famous altcoin Ethereum has been performing well in the past week, probably due to the upcoming September merge.
Two days ago, the altcoin even crossed the $1,700 mark. However, the coin has dipped below the $1,500 market, trading at $1,473 by press time.
Also, Cardano has dipped by 8.5% in the day, Avalanche by about 8%, and Solana by 6.9%. Other altcoins such as Dogecoin, Polkadot, Ripple, Binance Coin, Polygon, and Shiba Inu are also in the red region with minimal declines.
Furthermore, the mid and lower-cap altcoins are still in the red region. Meanwhile, over $80 billion has left the crypto market on the last day. This is after the total market cap crossed $1 trillion after a long time.