- Bitcoin drops below $56K, mirroring global market instability, but shows slight recovery.
- Ethereum, Solana, XRP, and Dogecoin follow Bitcoin’s decline, reflecting a broader crypto market drop.
- Toncoin tumbles over 8%, impacted by Telegram founder’s arrest and network issues, falling out of top-10.
Bitcoin experienced a drop late Tuesday, falling below the $56,000 mark, reflecting broader market instability. The sudden dip occurred just as Asian stock markets opened, with Bitcoin’s price plunging to $55,746, according to CoinGecko data.
This was in line with what was experienced on Wall Street where the Dow Jones Industrial Average fell by 600 points with most of the losses being contributed for Nvidia, a technology company.
During the early Asian trading session, the Nikkei 225 index had plunged by 1,000 points to an opening that is far below what it had been at the previous trading period. It stand a s a testament to the relation between the stock markets of the world and Bitcoins where the global stock markets fell simultaneously.
Bitcoin, however, showed some signs of recovery, trading at $56,463 at the time of writing, though it remained nearly 3% down for the day.
Ethereum, the second-largest cryptocurrency by market capitalization, also felt the effects of the market downturn. The digital asset dropped over 4% on Tuesday, reaching a low of $2,318 before slightly rebounding to $2,339. This decline erased the modest gains Ethereum had achieved since August 7.
The drop in Ethereum prices mirrored Bitcoin’s performance, indicating a broader market reaction rather than isolated events.
Other major cryptocurrencies also suffered during the market shake-up. Solana (SOL) saw a 6.4% decrease, trading at $125, while XRP and Dogecoin (DOGE) were down 3.1% and 5%, respectively. XRP traded at $0.55, and Dogecoin was at $0.094, reflecting the general market sentiment.
Toncoin (TON), closely associated with Telegram, experienced even greater losses amid the broader market decline. The cryptocurrency fell out of the top-10 by market cap, dropping over 8% to $4.78. The downturn in TON’s price followed the recent arrest of Telegram founder Pavel Durov in France and subsequent network outages, exacerbating its decline during the already volatile trading period.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
