Bitcoin Tumbles to Six-Week Low; Crypto Markets Shed $200B
Bitcoin price tumbled to a six-week low as crypto markets lost $200 billion in value. After briefly surging above $117,000 following Fed Chair Jerome Powell’s rate-cut hints, bitcoin retraced and plunged below $111,000 on Sunday, dragging its market capitalization down to $2.225 trillion and pushing total crypto market cap under $4 trillion. Ethereum slipped over 3%, falling from an all-time high near $4,950 to around $4,600, while XRP dropped below its $3 support. Major altcoins including SOL, ADA, TRX, DOGE, XLM and LINK posted declines, with smaller tokens like SUI, LTC, AAVE, PEPE, ENA, MNT, OKB, UNI and ETC experiencing daily losses up to 8%. Bitcoin’s dominance holds at just over 56%. The sudden price tumble underscores market volatility amid macroeconomic uncertainty and renewed selling pressure across altcoin sectors.
Bearish
The sudden drop in Bitcoin price below $111,000 and the $200 billion erosion in crypto market capitalization signal heightened bearish sentiment. Historically, such abrupt sell-offs follow brief rallies triggered by macroeconomic catalysts – in this case, Fed Chair Powell’s rate-cut remarks – and often lead to further downside as traders cash out profits. The steep declines across major altcoins, with losses up to 8%, reflect a broad risk-off shift that typically precedes a consolidation phase. In the short term, trading volumes may spike as investors seek to establish new support levels, but volatility will likely remain elevated. Long-term investors might view the correction as a buying opportunity, yet sustained recovery requires renewed positive triggers, such as clear policy easing or institutional inflows. Overall, the prevailing market dynamics and comparison with past downturns suggest continued bearish pressure until sentiment stabilizes.