Bitcoin's July Rally Collapses as Altcoin Market Sees Widespread Declines
Bitcoin's July rally has come to an abrupt end as prices plummeted to $62,236 on July 31, a nearly $3,000 drop from the previous day. This decline dragged Bitcoin's market capitalization down to $1.26 trillion from just over $1.3 trillion.
The Federal Open Market Committee's decision to keep interest rates unchanged and ongoing Middle East tensions have contributed to the bearish sentiment in the crypto market. The U.S. Senate's inability to reach a compromise on the CLARITY Act has also dampened hopes for a Bitcoin recovery.
Most high-cap altcoins logged losses ranging from 2% to 3% over the past week, with Ethereum (ETH) closing at just over $1,860 after being on the cusp of breaching the $2,000 mark. BNB and ADA bucked the trend with gains of 2.4% and 15.3%, respectively.
The total altcoin market cap dropped from nearly $1.02 trillion to $964 billion, while Bitcoin's weekly slide of 2.5% contributed to a decline in the crypto economy's aggregate market capitalization to $2.22 trillion on August 2.