Bitcoin (BTC) Loses $5K in a Day, Ethereum (ETH) Drops Below $4,500: Market Watch

The total market capitalization plunged below $4.3 trillion.

The cryptocurrency market, which had been booming since the start of October, took a step back over the past 24 hours.

Bitcoin (BTC) briefly tumbled under $121,000, whereas Ethereum (ETH) and other popular altcoins registered even more substantial losses.

BTC Heads South

The start of the business week offered additional gains to the primary cryptocurrency, whose price tapped a new all-time high of over $126,000 on October 6. The bulls, however, could not maintain the momentum, and the valuation has been on a downtrend since then.

A few hours ago, BTC tumbled to as low as $120,700 before rebounding to the current $121,700 (per CoinGecko’s data), representing a 2% decline on a daily scale.

We have yet to see whether that is a healthy pullback or the beginning of a bearish trend. The massive inflows into spot BTC ETFs and the shrinking amount of coins stored on crypto exchanges suggest the first scenario is more likely.

Following the latest correction, Bitcoin’s market capitalization plunged to approximately $2.42 trillion. Its dominance over the altcoins remains relatively unchanged at around 56.9%.

ETH Loses an Important Resistance Level

The majority of the leading altcoins have followed BTC’s trajectory. Ethereum (ETH) dipped by 5% over the past day and plunged below $4,500. Ripple’s XRP retraced by 4% to $2.86, whereas Solana (SOL) and Dogecoin (DOGE) are down by 2-3%.

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Plasma (XPL) is the biggest loser from the top 100 club with a daily drop of 11%. World Liberty Financial (WLFI) and Pi Network (PI) come next with dips of 9% and 8%, respectively.

However, some alts remain in green territory. Binance Coin (BNB) is up 6% for the day and trades well above $1,300. As CryptoPotato reported, it has become the third-biggest cryptocurrency after flipping Ripple’s XRP and USDT (the stablecoin issued by Tether). PancakeSwap (CAKE), Mantle (MNT), and Aster (ASTER) have also posted significant gains.

The total market capitalization of the sector has tumbled by 2% over the last 24 hours and stands at roughly $4.27 trillion.