On Tuesday, along with several other cryptocurrencies printed massive losses, with the total market capitalization of the sector losing nearly $200 billion.

Although the price of Bitcoin fell to below $40,000 for its flagship currency, several altcoins suffered double-digit losses. Although Bitcoin has reclaimed the $40,000 benchmark, is still trading at less than $3,000.

Given the current situation, this latest drop in price was very unexpected. Bitcoin had reached an all-time high of $48,000 11 days ago. The price plummeted to 42,500 by Monday morning. Although it did recover from $44,000, this recovery was brief. The bears took control of the market, sending the price to $40,000 below its highest point since late August. Bitcoin’s price had risen slightly to $42,300 by press time.

Market losses aren’t limited to the crypto sector. Similar downturns were also experienced by the US financial markets. The S&P 500 closed with a 2% decline, its worst trading day since May even though the futures contracts opened higher yesterday ahead of the next Fed meeting.

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