Cryptocurrency markets faced significant turmoil today, with major tokens experiencing steep declines. Bitcoin (BTC) fell to $56,000, with several altcoins, including Ethereum (ETH), Solana (SOL), and XRP, following suit, mirroring the broader downtrend. The decline coincided with the U.S. Department of Justice (DOJ) investigating Nvidia, raising concerns across the digital asset space.
Bitcoin and Major Altcoins Slump
Bitcoin (BTC) It experienced a notable decline, dropping to $56,000, a significant decline from recent levels. Ethereum (ETH), Solana (SOL), and XRP also suffered significant losses, with ETH plunging to $2,373 and SOL dropping to $128. The sudden drop shows growing investor concern about the potential repercussions of the DOJ investigation into leading AI company Nvidia, which is under suspicion of antitrust violations.
DOJ’s Nvidia Investigation Sparks Market Uncertainty
The DOJ investigation into NVIDIA has sent waves of uncertainty through the financial markets. Subpoenas have been issued to NVIDIA and other companies as part of the investigation into potential antitrust violations. This development has not only affected NVIDIA’s stock, but has also contributed to a 4.60% drop in the global cryptocurrency market cap, while the S&P 500 has also fallen by 2.12%.
Despite the downtrend, the overall cryptocurrency market volume surged by 15.14% to $65.59 billion. The increase in trading activity suggests that while many investors are selling their assets, others are taking advantage of the low prices to enter the market.
Bitcoin’s Dominance Rise Amid Market Downturn
As Bitcoin’s price fell to $56,698, the leading cryptocurrency’s market dominance increased slightly, rising by 0.08% to 56.40%. This change indicates that while altcoins are suffering greater losses, Bitcoin remains a relatively stable asset in the eyes of many investors. However, concerns about future price movements persist, especially as the Bank of Japan (BOJ) hints at a possible rate hike in the near future.
Ethereum and Solana also hit
The price of Ethereum fell 6% over the past 24 hours to $2,373. This decline coincides with the $47.4 million outflow from spot Ethereum ETFs as of September 3. Meanwhile, Solana (SOL) fell 6% to $128. These altcoin declines reflect broader market sentiment, which has been affected by the DOJ’s actions and the overall economic situation.
XRP and Meme Coins Under Pressure
XRP did not escape the market slump, falling 2% to $0.5527. Popular meme coins for retail investors also followed suit. Dogecoin (DOGE) fell 3%, Shiba Inu (SHIB) fell 4%, and other meme tokens such as PEPE, WIF, and FLOKI fell between 5% and 7%.
Top Winners and Losers
Despite the overall market downturn, some cryptocurrencies showed gains. Bitcoin SV (BSV) rose by around 3% to $45.08, while SUI rose by around 2% to $0.8018. On the other hand, Fantom (FTM) and Bittensor (TAO) were among the hardest hit, with FTM down 11% to $0.3823 and TAO down 11% to $251.
Market sentiment remains cautious
The continued volatility has investors on edge, with the hourly chart showing continued price swings. Bitcoin is down 0.28% in one hour, while Ethereum is down 0.47%, fueling speculation about the direction of the market in the coming days.