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On Tuesday, Bitcoin and several other cryptocurrencies suffered huge losses, with the sector’s overall market capitalization falling by nearly $200 billion. While the flagship cryptocurrency dropped below $40,000, many altcoins experienced double-digit losses. Despite the fact that Bitcoin has recaptured the $40,000 level, Ethereum is still trading for less than $3,000.
Given the state of affairs over the weekend, the current price reduction was fairly unexpected. Bitcoin soared above $48,000 just a few days ago, an 11-day high. By Monday, the price had dropped to a low of 42,500 in a matter of hours. It was able to rebound to around $44,000, but this was only for a brief time. The bears gained control of the market, sending the price plummeting to below $40,000, its lowest level since early August. At the time of publication, Bitcoin has rebounded marginally to $42,300.
Market losses are not limited to the crypto realm. Similar downturns occurred in the financial markets of the United States. Even though futures contracts opened higher Friday ahead of the upcoming Fed meeting, the S& P 500 closed down 2%, its lowest trading day since May.