Bitcoin (BTC) slipped below the $25,000 mark on Monday, a level not seen in 88 days, threatening to drag the total cryptocurrency market capitalization under the $1 trillion threshold. At 2:00 p.m. Eastern Time, BTC was hovering just above $25,000, having touched an intraday low of $24,957, signaling heavy selling pressure.
Crypto Market Suffers Broad Downturn
The broader crypto market declined 2.3% in the past 24 hours, with multiple digital assets posting notable losses. Ethereum (ETH) fell over 4%, dropping below $1,600. Data shows Bitcoin last traded below $25,000 on June 15, 2023, marking a nearly three-month consolidation period with diminishing trading volumes. The last time the total crypto market cap dipped under $1 trillion was on March 10, 2023.
Analysts attribute the sell-off partly to the U.S. Securities and Exchange Commission's delayed decisions on seven spot Bitcoin ETF applications, announced 11 days ago. This regulatory setback dampened BTC's momentum and exerted pressure across the entire crypto ecosystem. Over the past 30 days, Bitcoin depreciated 14.6% against the U.S. dollar, while Ethereum dropped 15.7%. Bitfinex's Alpha Report indicates that approximately $55 billion exited the crypto sector in August.
Simon Peters, market analyst at eToro, commented in a note to Bitcoin.com News: "Despite the first week of September arriving, the crypto market is still in the doldrums lacking signs of direction." He noted that BTC "was broadly flat in the past seven days, down just 0.43% week-on-week."
Traditional Markets Rally as Tesla Surges
In stark contrast, traditional equity markets flourished on September 11, with all four major U.S. indices posting gains. The rally was largely driven by Tesla's sharp rise following an upgrade from Morgan Stanley, which raised its rating to "overweight" and significantly increased its price target. Tesla's strength lifted the broader tech sector, boosting the Nasdaq Composite.
The divergence between crypto and equities highlights different pricing dynamics: digital assets remain highly sensitive to regulatory catalysts and liquidity conditions, while stock markets focus more on company fundamentals and industry trends. Some analysts suggest that if Bitcoin fails to reclaim the $25,000 level, selling could accelerate, possibly bringing the total market cap below $1 trillion. However, others point to the resilience of traditional markets as a potential positive signal for risk appetite in the coming weeks.