Bitcoin Dropped to 7-Week Low Beneath $40K Before Recovering (Market Watch)

After falling below $40,000 for the first time since August 5th, the primary cryptocurrency has recovered some ground to above $42,000.

Bitcoin’s price continued to suffer in the past 24 hours as the asset dumped below $40,000 for the first time since early August. Most altcoins also followed, with ETH standing beneath $3,000 and SOL dropping by more than 6%.

BTC’s Drop Below $40K

It’s safe to say that the primary cryptocurrency has seen better days. In fact, they weren’t all that long ago as BTC traded above $48,000 during the weekend.

However, the situation vigorously changed on Monday as the Evergrande saga took another turn. Bitcoin, as well as the global stock markets, started to dump in value.

In a matter of hours, BTC slumped from $48,000 to a daily low of $42,500. It attempted a rapid recovery, but the bears intercepted the move at around $44,000 and pushed it south once more.

This time, BTC dropped to just over $40,000. The scenario repeated once more, and bitcoin was stopped in its tracks at $43,000 yesterday. Another price fall transpired with bitcoin dumping all the way down to $39,600 (on Bitstamp). This became its lowest price level since August 5th.

As of now, the cryptocurrency has recovered a few thousand dollars and stands above $42,000. However, its market capitalization is down to $800 billion after challenging the $1 trillion mark two weeks ago.

BTCUSD. Source: TradingView
BTCUSD. TradingView

ETH Struggles Below $3K

The alternative coins have also suffered badly these days. Ethereum is among the most substantial losers. ETH had neared $3,700 last week but dropped all the way down to $2,650 hours ago. Despite bouncing off from this $1,000 price slump, the second-largest cryptocurrency still stands below $3,000 as of writing these lines.

Binance Coin, which peaked above $500 earlier in September, is now down to $360. Solana, among the most impressive performers in the past month or so, has dropped by another 6% and stands below $135. Polkadot (-4%), Terra (-1.5%), Uniswap (-5.5%), and Chainlink (-4%) are also well in the red.

Cardano, Ripple, and Dogecoin have stalled since yesterday, while Avalanche is the only larger-cap alt with impressive gains. AVAX is up by 4.5% in a day to $65.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Quantify Crypto

Further losses come from OMG Network, Celo, NEAR Protocol, Harmony, Audius, Cosmos, Fantom, Mina, SushiSwap, and more.

The cryptocurrency market cap is down below $1.8 trillion, meaning it has lost roughly $400 billion since the weekend high.


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