Ethereum Drops to 2024 Low Amidst Market Volatility
Ethereum has experienced a significant decline, hitting its lowest price of 2024 after falling nearly 8% in the past 24 hours. This drop has pushed the price below $2,193, a level not seen since last year. The second-largest cryptocurrency has been struggling, falling 13% in the past week, underperforming most other major coins and tokens.
This downturn comes amidst a broader market sell-off, with Bitcoin also experiencing a sharp decline. The cryptocurrency fell to $52,690 before recovering somewhat to $53,516 after losing 5% in the past day.
The market is facing significant headwinds as investors are quickly cashing out of crypto and equities, driven by weaker-than-expected economic data from the US. The American stock market had its worst week since March 2023, with tech stocks experiencing the most significant losses.
The current market capitalization of the entire crypto sphere now sits at $1.96 trillion, a 6% decrease in the last 24 hours. This drop pushed the market capitalization below the $2 trillion threshold for the first time since February.
CoinGlass data shows that over $272 million in crypto positions have been liquidated in the last 24 hours. Long positions, which bet on the price of assets going up, accounted for $221 million of these liquidations.
Investors are closely watching the Federal Reserve this month, anticipating a rate cut. However, there is uncertainty about the magnitude of the cut. The Fed has aggressively hiked interest rates to a 23-year high to combat inflation.
The current market volatility underscores the risks associated with crypto investments. While many investors remain bullish on the long-term prospects of crypto, the near-term outlook is uncertain.
