Bitcoin Drops to Four-Week Low as Market Dynamics Turn Harsh

The week was not favourable for the virtual currency market as it recorded a sharp decline, with Bitcoin being the hardest hit. Dropping by more than 2%

The virtual currency market experienced a downturn this week, with Bitcoin being hit the hardest. Dropping by more than 2% in an hour during the US trading session, the coin fell down to $65,100, which is its four-week low. This fall from the $67,000 level meant the asset had experienced a 7% decline in the past week.

BTC/USD 24 Hour Price Chart (Source: CoinMarketCap)Altcoins suffered greater losses this week, with smaller cryptocurrencies faring worse than Bitcoin. The CoinDesk 20, an index of leading coins, declined 11.7% since last Friday. Ether, the second largest cryptocurrency, also dropped by 2.7% and is now trading at $3,380.

Meanwhile, other top altcoins, including Solana, Avalanche, Cardano, and Near, also recorded negative percentages of 15-20%.

In other news, nearly $180 million in leveraged derivatives positions were liquidated over the past 24 hours, while the week totalled over $870 million. These corrections have effectively removed excess leverage from the markets.

Recent economic data and Federal Reserve projections did not align with investor expectations for a softer monetary policy, which put pressure on the markets and dampened the mood. Increased dollar strength and political uncertainties in Europe also contributed to the downturn, overshadowing earlier optimism for a Bitcoin rally.