During another dramatic and painful Saturday evening session, Bitcoin’s valuation plunged by $5,000, reaching a new low in recent weeks at approximately $61,000.

The drop wasn’t limited to Bitcoin; alternative cryptocurrencies suffered significant losses as well, with many experiencing double-digit percentage drops. Increased geopolitical tensions between Iran and Israel were largely blamed for the market’s downturn.

Bitcoin’s Wild Ride Persists

Merely two days before, Bitcoin was trading relatively stably above the $70,000 mark, with attempts to breach $71,000 proving unsuccessful. The scenario deteriorated Friday night following remarks from senior figures at the U.S. Federal Reserve indicating that the central bank had no immediate intentions to cut interest rates.

Reacting quickly to this news, Bitcoin lost $5,000 to $6,000 within minutes, sinking to $65,000. Notably, this downturn coincided with a broader financial market slump on Friday, exemplified by a 4% fall in the price of gold.

Bitcoin regained some traction on Saturday morning, rising above $67,000. However, the situation escalated with the tensions between Iran and Israel, prompting another sharp decline in Bitcoin’s price.

This time, Bitcoin reached a multi-week valley just above $61,000 (reflected on Bitstamp), triggering over $700 million in liquidations. Since then, the price has made a slight recovery, currently surging above $64,000, although the market remains in a precarious state as it is the only one trading today.

The market cap of Bitcoin has shrunk by around $130 billion since last Friday, dropping to $1.270 trillion. In contrast, its dominance relative to altcoins has climbed by about 2% in the same period.

Altcoins Take a Major Hit

As usual, when Bitcoin takes a significant downturn, altcoins tend to follow suit, often with even greater losses. While some have seen modest recoveries, the overall picture remains grim. The chart below illustrates widespread double-digit declines, with cryptocurrencies like SOL, XRP, DOGE, TON, ADA, AVAX, SHIB, DOT, and ETH deeply affected.

The total market cap of all cryptocurrencies has fallen from nearly $2.8 trillion on Friday morning to roughly $2.330 trillion by Saturday night. Though it’s managed a $100 billion rebound, the total market still registers a 5% decrease for the day.