Bitcoin jumped above $29,000 yesterday to record a new nine-month high, but that was short-lived and the asset fell back hard in the hours that followed.
Most altcoins are also in the red, with SOL, APT, LDO, OKB and others dropping more than 5%.
Bitcoin Fails at $29K
The top cryptocurrency’s rise culminated in a jump to $28,800 midweek ahead of the Federal Reserve’s decision on whether to continue raising interest rates. While many local banks struggled due to high rates, many experts believed that the Fed would eventually reverse its policy.
However, that was not the case. The FOMC’s second annual meeting mirrored the first, and the central bank raised key rates by 25 basis points. Risk assets, such as bitcoin, fell.
The cryptocurrency fell hard by over $2,000 in hours to just over $26,500. However, it bounced and jumped to over $28,000 on Friday. It kept climbing and even briefly surpassed $29,000 (on Bitstamp) for the first time since June of last year.
However, he failed there, and the subsequent pushback pushed him south hard. As of now, BTC is struggling below $27,500, while its market cap is back down to $530 billion. Its market dominance has increased slightly and stands at just over 46%.
ARB dumps 20%
Aside from the FOMC meeting, all eyes in the crypto community in the last week were on the highly anticipated airdrop of Arbitrum. The token finally launched on Thursday with a lot of volatility before settling on Friday around $1.5. However, ARB has plunged more than 20% in the last 24 hours, and is currently sitting at $1.2.
Stacks is another massive loser on a daily scale as it is down 14% and is trading below $1. Further losses are evident from APT, LDO, OKB, FIL and SOL, all of which are down more than 6%.
Larger-cap alternatives are also in the red, albeit in a more modest fashion. Ethereum sits at $1,750 after a 2.5% daily pullback. Ripple is among the few exceptions with notable gains, having jumped 4%.
Overall, the total crypto market capitalization dropped by around $20 billion in one day to $1.15 trillion.
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