Bitcoin falls by $1,000 and the virtual currency market turns red (Market Watch)

BTC recently hit a three-week high before stalling around $28,000, but has fallen significantly over the past few hours.

Altcoins also turned red, with ETH falling below $1,900. Its market capitalization fell by more than $20 billion in one day.

BTC rejected at $28,000

Bitcoin fell sharply on Thursday to a two-week low below $26,000, but it reacted well and recovered almost all its losses by the end of the week. A further small increase was seen on Sunday, with the asset rising to $27,400.

Prices rose further on Monday morning after the US government reached an agreement on the debt ceiling. BTC rose about a grand to hit a three-week high of $28,500 (on Bitstamp).

However, it failed to move further north and reverted back to around $28,000. We spent most of yesterday at that level, but things went downhill a few hours ago. The cryptocurrency failed to decisively break above $28,000, leading to a sharp rejection and a drop of $1,000 to $27,000.

At the moment, BTC has managed to stay above that line, but it has fallen more than 2% on the day. Its market capitalization has fallen to $525 billion, and its control over alternatives has fallen to 46.3%.

Alts See Red too

Most alternative coins have followed the trend of BTC. Ethereum had been above $1,900 for several days in a row, but has fallen by 1.3% in the past 24 hours to $1,870. Binance Coin has also fallen by a similar percentage and is currently struggling at $306.

Cardan, Dogecoin, Polygon, Solana, Tron, Polkadot, Litecoin, Shiba Inu, and Avalanche are also in the red, with losses of up to 3% per day.

Lido Dao released the most players among the top 36 alternative players. LDO is down 6% to below $2.1. In contrast, QNT and GRT recorded modest increases of ~4%.

Overall, the market capitalization of cryptocurrencies has declined by more than $20 billion in a single day and is now below $1.14 trillion.