When Bitcoin fell below $59,000 on August 28, it caused sharp drops in altcoins. As Bitcoin, the most significant cryptocurrency, dropped by 6% in 24 hours, leading altcoins like Fantom, Sui, FET, and Lido DAO all saw loses of 10% or more.
Fantom, a blockchain tool for DeFi that can be scaled up or down, fell 14%, and its market value also fell 14% to $1.219 billion. Sui, the Sui blockchain’s native token, fell 11.8% and was trading at $0.8302. CoinGecko says that the dollar value of the token dropped to $2.16 billion, making it the 44th most significant cryptocurrency.
Bitcoin’s Market Influence Ripple Effect
The Artificial Superintelligence Alliance, which is made up of Fetch.ai, SingularityNET, and Ocean Protocol, also had problems. The value of its coin dropped 13.7% to $1.22. Lido DAO also lost a lot of value. Its market cap dropped to $938 million and it traded at $1.04.
Bitcoin’s significant influence on the market often causes a ripple effect that causes many altcoins to fall when Bitcoin’s value drops sharply. The price of Bitcoin recently dropped to $58,609, and it had been moving between $58,059 and $62,963 over the past 24 hours. At 30 points, the Fear and Greed Index shows that the crypto market is in a state of fear.
According to a report from Glassnode, Bitcoin’s drop was caused by a balanced market. The MVRV ratio, which has been staying around 1.72, shows that the market could be shifting between bull and bear markets. People aren’t as excited about Bitcoin spot ETFs as they used to be, which has led to the current price drop.
Some experts think that the ongoing conflict between Russia and Ukraine is to blame for Bitcoin’s drop. During times of conflict, risky assets like BTC are often sold off first. But crypto expert Ash Crypto thinks that smart funds is buying BTC for between $50,000 and $65,000 because they think the price will rise by the end of September.
The Relative Strength Index (RSI) for BTC is 44.56, which means it is neither oversold nor overpriced. The funding rate has also gone down to -0.004%, which is often a sign that prices will rise in the short run. More than $320 million was lost in the crypto market as a whole. Long positions lost $285 million, and short positions lost $35 million.
