Bitcoin Price Drop Sparks Crypto Market Crash

This week has been particularly challenging for the cryptocurrency market. Both Bitcoin and altcoins have been on a downward trend on daily and weekly scales, with the total crypto market cap losing $250 billion since last Sunday. This negative trend was led by price falls in Solana (SOL) and Avalanche (AVAX). Bitcoin surged to $64,000 last weekend but quickly reversed to a downward trend, reminding everyone of the presence of bear markets. After hitting a three-week high of $65,100 on Monday, it then plummeted by $7,000 to $58,000 by Wednesday. By Friday, it had fallen to $57,750 and attempted several rebounds but was blocked at the $59,000 level. As a result, Bitcoin fell 1.2% on a daily basis and approximately 9% on a weekly basis. Its market capitalization shrank to $1.15 trillion, although Bitcoin's market dominance increased to 53.9%. Bitcoin's decline was influenced by several factors, including selling pressure due to the U.S. tax reporting season, moves toward stronger global regulatory measures, and instability in traditional financial markets. Additionally, altcoins experienced even greater declines. Ethereum (ETH) fell 9.5% on a weekly basis, staying below $2,500, due to the lack of demand for Ethereum ETFs in the U.S. Binance Coin (BNB) saw an 8.6% price fall, Ripple (XRP) experienced a 6.6% price decrease, Dogecoin (DOGE) faced an 8.2% bid drop, Cardano (ADA) slid 9% in price, Shiba Inu (SHIB) declined by 7.5%, and Chainlink (LINK) dropped nearly 10%. Solana and Avalanche dropped more than 15%, registering at $132 and $22, respectively. For Ethereum, the decrease in ETF expectations in the U.S. increased selling pressure. Ethereum ETFs saw outflows totaling $111.9 million over eight consecutive trading days, with BlackRock's Ethereum ETF seeing minimal inflows. Reasons for the altcoin declines included overall market weakness, reduced confidence in specific projects, and regulatory risks. For instance, investor confidence in the Solana network dropped due to frequent downtimes. The total cryptocurrency market capitalization now stands at $2.14 trillion, with $250 billion evaporating over the past seven days. The primary reasons for the decline were selling pressure due to the U.S. tax reporting season, stronger regulations, and China's crackdown on cryptocurrency mining. Some experts suggest that there may be a potential for recovery following a market correction. FET was the only asset to record actual gains on a weekly basis. TON saw a slight weekly increase but plummeted after Telegram CEO Pavel Durov was arrested last Saturday. Various experts are predicting a long-term price increase for Bitcoin, viewing the short-term correction as a buying opportunity.