The cryptocurrency market has presented a divided picture over the past 24 hours. Bitcoin, after a week of dramatic swings that saw it chart a new all-time high, has found a stable footing around the $117,500 mark, remaining largely unfazed by the recent high-stakes meeting between US and Russian leaders.
In stark contrast, the altcoin market has experienced a significant sell-off, with major assets like Ethereum tumbling and wiping billions from the total crypto market capitalization.
Bitcoin’s Volatile Journey to Stability
It was an eventful week for the world’s leading cryptocurrency. The action began with a powerful surge that took Bitcoin from $119,000 to a multi-week peak of over $122,000. While the bears initially prevented a push toward its previous all-time high, the momentum returned midweek.
On Thursday, Bitcoin’s price soared, culminating in a new all-time high of $124,500. However, this peak was short-lived. The asset quickly reversed course, dropping back to $121,000 almost immediately. The decline was accelerated by hotter-than-expected US Producer Price Index (PPI) data for July, which pushed BTC below the $118,000 support level.
Market participants had anticipated further volatility surrounding the Friday meeting between the presidents of the US and Russia. Despite the summit concluding without a ceasefire agreement, Bitcoin’s price demonstrated resilience, maintaining its position around $117,500.
Currently, Bitcoin’s market capitalization stands at $2.340 trillion, with its dominance over the altcoin market holding strong at nearly 58%.
Ethereum Leads the Altcoin Plunge
While Bitcoin found its floor, the altcoin space was a sea of red. Ethereum, which had enjoyed an impressive rally in recent weeks, came within inches of its 2021 all-time high by touching nearly $4,800 just days ago.
However, it failed to break this critical resistance. The subsequent market-wide correction has hit ETH hard, with a 5% daily decline pushing its price well below the $4,500 level.
The negative sentiment has spread across the board. Other major large-cap altcoins have also posted significant losses:
Solana (SOL)
Chainlink (LINK)
Avalanche (AVAX)
Sui (SUI)
Hype (HYPE)
These assets have seen their values drop by 3-7% in the last 24 hours.
One notable exception in the market is MNT, which has defied the bearish trend with a remarkable surge of over 10% to trade at $1.20.
Overall, the broad downturn in the altcoin sector has resulted in the total cryptocurrency market capitalization shedding another $80 billion overnight, bringing it down to $4.050 trillion, according to CoinGecko data.
