Crypto Market Back In Red, BTC Dives Below $38K

The cryptocurrency market was in retreat on Wednesday morning, a day after experiencing a short-lived surge as Tesla's Elon Musk announced the takeover of Twitter. Significantly, Bitcoin dropped below the $38k mark for the first time since mid-March as dollar gained.

The global market cap was down 5.07% at $1.77 trillion as of 1.54 a.m. ET, CoinMarketCap data showed. Bitcoin was down 5.34% at $38,434. Ethereum, too, dipped 5.45% to $2848.

WazirX trade desk said: " Bitcoin experienced a significant correction in the day taking its price below the $38,000K mark for the first time since mid of March this year as the dollar index reached a 2-year high."

"Elon Musk’s takeover of Twitter seemed to have triggered an uptrend in the crypto markets which, however, was short-lived," the Indian exchange told International Business Times.

The exchange expects Bitcoin and the crypto markets to bleed in the days to come as the dollar index continues to strengthen.

Ethereum against Bitcoin gained marginally with the BTC’s dominance index staying below 42%, the WazirX trade desk noted.

Barring a slight uptick in USD Coin, all of the top 10 tokens dipped. Meme cryptos Dogecoin and Shiba Inu too plunged.

In other news, Singapore-headquartered digital asset exchange Bybit has announced the expansion of its services, enabling crypto options trading. This will allow Bybit users to trade USDC options and perpetuals through portfolio margin, to increase fund utilization based on the underlying price and volatility.

The crypto market is extremely volatile and experts recommend investors not make decisions based on the sudden shift in prices.

Photo: AFP / NICOLAS TUCAT