Bitcoin Plunges to $66K, Altcoins Tumble 10-15% on Ugly Day for Risk Assets

Bitcoin and other cryptocurrencies experienced a significant downturn on Friday, April 12, 2024, with Bitcoin plummeting to below $66,000 and altcoins witnessing declines ranging from 10% to 15%. This proved to be a challenging day for risk assets, as traditional markets also experienced a risk-off sentiment due to flared-up geopolitical risks.

 

Bitcoin price drops sharply, altcoins follow. Market shows 10-15% decline. Risk assets suffer

 

The sudden decline in Bitcoin’s price was a surprise to many investors who were expecting the cryptocurrency to continue its upward trend. Just hours earlier, Bitcoin had challenged the $71,000 level before plunging below $66,000 during fast downward afternoon action in U.S. trading. The second-largest cryptocurrency by market cap, Ether, also fell as much as 12% to $3,100 before a slight rebound.

Investors may expect market weakness due to the ongoing tax season, as Ryze Labs warned in a report. The decline in the cryptocurrency market is expected to continue, and investors should brace for continued market weakness beyond the current decline. The sudden decline in Bitcoin’s price and the subsequent decline in altcoins highlights the volatility of the cryptocurrency market and the importance of being vigilant when investing in these assets.

 

Key Takeaways

  • Bitcoin’s sudden decline to below $66,000 and the subsequent decline in altcoins highlights the volatility of the cryptocurrency market.
  • Investors should brace for continued market weakness beyond the current decline due to the ongoing tax season.
  • The sudden decline in Bitcoin’s price is a reminder of the importance of being vigilant when investing in cryptocurrencies.

 

Bitcoin’s Sudden Decline

 

Bitcoin's value drops dramatically to $66K, causing other cryptocurrencies to fall 10-15%. The scene is chaotic and negative for risk assets

 

Bitcoin, the world’s largest cryptocurrency, has experienced a sudden decline in its value on Apr. 12, 2024. At press time, Bitcoin had plummeted to $66,700, down more than 5% over the past 24 hours. This decline has been attributed to the risk-off sentiment in traditional markets amid flared-up geopolitical risks spreading over to digital assets.

 

Impact on Bitcoin Investors

The sudden decline in Bitcoin’s value has left many investors caught off-guard. This decline has caused panic among investors, with many selling their Bitcoin holdings in a bid to minimize losses. This has resulted in a sharp decline in Bitcoin’s price, causing it to drop below $66,000.

The decline in Bitcoin’s value has also had a ripple effect on other cryptocurrencies, with altcoins such as Ether experiencing a 12% decline to $3,100. This has led to a significant loss for investors who had invested in these cryptocurrencies.

 

Market Analysis

Looking beyond today’s decline, investors may expect market weakness due to the tax season. According to Ryze Labs, investors should brace themselves for further market weakness as the tax season approaches. This is because many investors are expected to sell their cryptocurrency holdings to pay taxes, resulting in a decline in the value of cryptocurrencies.

However, despite the decline, many experts believe that Bitcoin’s long-term outlook remains positive. The decline in Bitcoin’s value is seen as a healthy correction, which was long overdue. This correction is expected to weed out weak hands and pave the way for a more sustainable growth in the cryptocurrency market.

In conclusion, while the sudden decline in Bitcoin’s value has left many investors worried, it is important to note that this is not the first time that Bitcoin has experienced such a decline. Investors should remain calm and avoid making panic-driven decisions. Instead, they should focus on the long-term outlook of the cryptocurrency market and invest wisely.

 

Altcoins Follow Suit

 

Altcoins drop as Bitcoin falls to $66K. Altcoins tumble 10-15% in a grim day for risk assets

Top Altcoins Affected

As Bitcoin took a dip, many of the top altcoins followed suit. Ethereum (ETH), the second-largest cryptocurrency by market cap, fell as much as 12% to $3,100 before a slight recovery. Binance Coin (BNB) also fell by around 10%, while Cardano (ADA) and Dogecoin (DOGE) both saw losses of over 15%.

Other altcoins such as XRP, Polkadot, and Solana also saw significant declines, with some dropping by as much as 20%. Overall, the altcoin market suffered losses of between 10% and 15% on this “ugly day for risk assets.”

 

Market Sentiment

The market sentiment was largely negative as investors reacted to the dip in Bitcoin’s price. Many analysts pointed to concerns about inflation and rising interest rates as contributing factors to the decline.

Additionally, some speculated that the dip was due to a combination of profit-taking and a lack of buying pressure. As Bitcoin had been on a steady upward trajectory for several weeks, it was perhaps only a matter of time before a correction occurred.

Despite the dip, however, many investors remain optimistic about the long-term prospects of both Bitcoin and the altcoin market. As always, it’s important to remember that cryptocurrency is a highly volatile asset class, and dips and corrections are a normal part of the market cycle.

By Jastra Kranjec

Jastra is an author at CryptoPresales. Over the years, she has worked in different fields of journalism and public relations, including politics, economy, crypto, and financial markets.