Last week, Bitcoin, the largest cryptocurrency of the globe surged to reach its lifetime high. However, currently, it has plunged below $60K, which is its weekly lowest level. Still, the coin has reported a 30% rise this month, which is its best after February this year.
As mentioned by Reuters, the profit booking on the recent rally is the major cause of this plunge. The same was the case for altcoins, the prices came down due to the profit booking.
Owing to the introduction of ETFs that attracted $ 1 bn of investment in just a couple of days, Bitcoin witnessed its historic rally and crossed the $65K mark last week.
Moreover, the second largest crypto (based on market capitalization), Ether, also plunged by around 5%. Likewise, the smaller cryptocurrencies witnessed a similar burn. For instance, Dogecoin and Solana fell by more than 8%. The hardest hit of 11% fall was faced by XRP and Cardano while Polkadot and Uniswap plunged by 9-10% approx. At present, XRP is around 69% down from its all-time high of $3.29 that was reported on 4th Jan 2018.
Contradictory to this, Shiba Inu Coin, the 9th biggest crypto with the market capitalization of $40 bn, has been reporting a rally from the last few days. But astonishingly it rose by a whopping 70% yesterday.
For the traders of Shiba Inu, it has been quite a ride. Earlier this week when Elon Musk mentioned his non-ownership of the coin, the coin plunged. However, the buzz about Robinhood adding Shiba Inu to their platform has pushed the coin to its record high.
Despite the volatility and violent selling, the market is calm as the traders are taking advantage of the fall by purchasing the BTC at discount. However, the vulnerability of the next liquidation prevails which will affect the altcoins as well.
