Altcoins Plummet Amid Bitcoin Rejection Below $82,000

Market Overview

Bitcoin's recent rejection at $84,000 resulted in another major leg down on Thursday morning, with the asset plummeting to a fresh monthly low of $80,200. This substantial correction didn't spare the altcoins as well, with many plummeting by over 5% from top to bottom. The total crypto market cap dumped by over $100 billion at one point.

Altcoin Performance

Ethereum led in terms of daily liquidations as it plunged the hardest from the top alts, going to a two-month low of $2,315 before it rebounded slightly to $2,370. XRP, Solana, BNB, and ADA are also down by 2%-4%, while DOGE and LINK have plummeted by 5% and 6%, respectively. ZEC has nosedived by 10.5% as of press time, dropping to $1,100. NEAR (-7.5%), RAIN (-11.5%), BTW (-18.5%), TAO (-6%), and QNT (-6%) are also well in the red.

Market Impact

The crypto market cap has shed around $100 billion as of now daily and it's down to $2.710 trillion on CMC. This significant correction is attributed to the growing tension in the Asian markets, which pushed Bitcoin further south. The bulls finally intervened after this major $6,500 decline in just days and helped the asset recover some ground to $83,000 over the weekend. Nevertheless, bitcoin rebounded again and went into the Wednesday CPI announcement trading close to $84,000. However, it slipped again toward $82,000 due to the growing inflation concerns.

Precedent & Market Context

The recent correction is not the first of its kind, as Bitcoin experienced a similar leg down in January 2022. However, the altcoin space has been more resilient in the face of such corrections, with some altcoins even experiencing gains in the wake of the sell-off.

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