The past week saw the overall crypto market drop, with the total cap dropping to some of its lowest levels. Bitcoin briefly dropped below $64,000, with altcoins following suit. Polkadot ($DOT) took a knock and currently trades below $6.
It has been a volatile week in the crypto market. Between June 20 and June, the market cap dropped an uncomfortable 3.9% to $2.34 trillion, close to its lowest levels in five weeks. The market decline affected every coin among the top 10, with Bitcoin dropping about 4%. Prices saw minor recoveries, but market sentiment remains bearish.
Popular altcoin Polkadot ($DOT) dropped by 10.07% over the past seven days, currently trading at $5.71.
The Reason Behind the Market Drop is Unclear
Market analysts speculated that the market downturn was caused by the German government's significant Bitcoin sale on June 19. However, The fallout from the German government's sale was mitigated by a large Bitcoin purchase by MicroStrategy, discrediting it as an explanation.
The more likely explanation for the drop is traders’ reaction to the adverse macroeconomic outlook. Traders are reportedly concerned about the current US fiscal situation and believe the stock market may have already peaked.
No Coin is Immune
While Bitcoin remains the general indicator of the state of the crypto market, altcoins are particularly volatile in instances of fiscal uncertainty. Despite significant positive developments in the ecosystem, Polkadot’s native coin $DOT, recently suffered a sizeable knock.
$DOT is down over 20% in the past month, dropping 10.89% over the past seven days. At the time of writing, $DOT exchanged hands at $5.68, down 1.10% in the past 24 hours.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
