Bitcoin’s rally above $28,000 following Grayscale’s win over the SEC was short-lived as the asset has lost all gains, falling below $26,000.
Most altcoins are also deep in the red, with DOT, MATIC, LTC, and BCH all down more than 5% overnight.
BTC dropped heavily
After trading around $26,000 for several days, bitcoin finally made a move on Tuesday following positive developments in Grayscale’s legal battle with the US Securities and Exchange Commission. As a US judge sided with the crypto asset manager, BTC exploded more than two hours later, hitting multi-week highs above $28,000.
However, that rally was short-lived. BTC started losing value almost immediately after its local peak and by yesterday morning had dropped to $1,000.
However, the worst was yet to come. The cryptocurrency went through another decline late last night, when it dropped by almost $1,500 in an hour 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 down about 5% on the day. Its market cap has dropped to $505 billion and its dominance of alts is back to 48.4%.
alt deep in red
Alternative coins have mimicked BTC’s performance recently, with a notable price increase in the middle of the week and a similar decline over the past 24 hours.
Ethereum surged above $1,750 during its rally but is now back to $1,650. Binance Coin, Ripple, Cardano, Dogecoin, Solana, and Shiba Inu have all declined by 3-5% over the past 24 hours.
Polkadot, Polygon, Litecoin and Bitcoin Cash suffer even more losses. All of these have declined by 5-7%.
TONCOIN and TRON are among the few exceptions, with modest gains from large-caps, while MKR is up more than 6% from mid-caps.
Overall, however, the total crypto market cap has declined by $40 billion in a day and is back to where it was before Grayscale won $1.050 trillion.
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