Bitcoin Erases All Gains Following Grayscale_s Win, Drops to Weekly Low Under $26K (Market Watch)

CryptoPotato

2023-09-01 08:53:45

Bitcoin’s rally above $28,000 following Grayscale’s win over the SEC was short-lived as the asset has lost all gains by dumping below $26,000.

Most altcoins are also deep in the red, with DOT, MATIC, LTC, and BCH plummeting by more than 5% overnight.

BTC Dumps Hard

After days of trading sideways at around $26,000, bitcoin finally made a move on Tuesday following a positive development in Grayscale’s legal battle with the US Securities and Exchange Commission. As a US Judge sided with the crypto asset manager, BTC exploded by over two grand in hours and charted a multi-week high above $28,000.

However, that rally was short-lived. BTC started to lose value almost immediately after its local peak and had retraced by $1,000 by yesterday morning.

The worst was yet to come, though. The cryptocurrency went through another leg down late last night when it slumped by approximately $1,500 in an hour or so and fell to a weekly low of $25,700 (on Bitstamp).

Despite recovering a few hundred dollars since then, bitcoin is still inches below $26,000 and is about 5% down on the day. Its market cap has plunged to $505 billion and its dominance over the alts is back down to 48.4%.

BTCUSD. Source: TradingView## Alts Deep in Red

The alternative coins have mimicked BTC’s performance as of late, with notable price gains mid-week and similar declines in the past 24 hours.

Ethereum exceeded $1,750 during its rally upwards but has retraced back down to $1,650 as of now. Over the past 24 hours, Binance Coin, Ripple, Cardano, Dogecoin, Solana, and Shiba Inu have all slid by 3-5%.

Even more losses come from the likes of Polkadot, Polygon, Litecoin, and Bitcoin Cash. All of them have slumped by 5-7%.

TONCOIN and Tron are among the few exceptions, with minor gains from the larger-cap alts, while MKR is up by more than 6% from the mid-cap ones.

Overall, though, the total crypto market cap has dumped by $40 billion in a day and is back at the same spot it was before Grayscale’s win at $1.050 trillion.

Cryptocurrency Market Overview. Source: Quantify Crypto

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