Bitcoin's price wars continued over the past 24 hours as the asset plunged to just over $40,000 but has since recovered by around two thousand dollars.
Most altcoins are in a similar situation, but some have surged in the last day or so. In the case of Avalanche, the asset has only doubled from its recent momentum.
BTC back to $42,000
The major cryptocurrency had an extremely volatile and positive week in early December, driving it from under $38,000 to a multi-month high of $44,700. The peak came on Saturday when BTC came within inches of hitting $45,000 for the first time since May 2022.
But finally the bears came on the scene and didn't allow any further increases. On the contrary, Bitcoin remained relatively calm throughout the rest of the weekend, but started losing value quite quickly on Monday.
This resulted in the price falling below $41,000 for the first time in a week. After a brief recovery, BTC moved lower again and fell to an 8-day low of $40,250 (on Bitstamp).
Nevertheless, the asset managed to recover and is currently back close to $42,000. Its market cap has returned to $820 billion, but its dominance over alts has taken a big hit and is now below 52%.
BTCUSD. Source: TradingView
AVAX on the road to success
Most alternative coins recorded losses as big as BTC yesterday, if not more. Today, however, the situation looks very different for some.
Binance Coin, Cardano and Polkadot are each up about 6% to $250, $0.59 and $7.1, respectively. Avalanche is in a league of its own with another 14% increase. AVAX is up more than 80% in the last week and is now trading at just over $40.
While SOL is also in the green against the larger altcoins, ETH, XRP, DOGE, TRX and LINK have recorded slight losses.
The total crypto market capitalization has recovered by about $20 billion from yesterday's low, but is still below $1.6 trillion.
Overview of the cryptocurrency market. Source: Quantify Crypto
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Cryptocurrency charts from TradingView.
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