One of the Worst Weeks of 2024 for Crypto Causes Bitcoin to Plummet

Bitcoin (BTC) is down to $61,199 (BTC/USD) today after dropping once more and adding to what has been called the second worst week of 2024 for the cryptocurrency market.

That is a 4.69% drop for Bitcoin over the last 24 hours, and a 7.14% drop for the last seven days. The wider market is not faring any better. We know that as Bitcoin goes, so often goes the rest of the crypto market. Accounting for the last seven days, we have seen the majority of the top 100 crypto tokens fall by about 5% on average.

What Is Causing the Crypto Market to Falter?

Earlier in the month, we saw Bitcoin above $71K and many analysts anticipated a new record high. But then the coin quickly fell and has continued on a downward trajectory. Today marks the bottoming out of that trend, though it could conceivably go lower.

The reason for this descent has been attributed to inflation fears, stemming from the Federal Reserve’s recent meetings and statements that FOMC members have made about tight inflation and the struggling US economy. The Federal Reserve is also looking to cut interest rates that are at their highest point in nearly 20 years. If they do, that could be bad news for the crypto market too.

Ether and Solana are seeing significant drops, and these are some of the longest declines in the last few years. We should be seeing the crypto market flourish, thanks to the recent Bitcoin halving and the government approval of crypto ETFs. ETF approval did help the market spike recently, but it did not last, and we have yet to see the upswing and the higher support level that usually occurs with a Bitcoin halving event.

We may still see a boost for the crypto market off the back of these events, but right now the market is floundering with no end in sight.