In one day, the cryptocurrency market saw more than $50B in losses. This is due to market’s losing its recovery streak. Due to large market recoveries in such a short time, this was expected. This has also brought down crypto’s total market to a significant level.
Crypto Market drops below $1 Trillion
Bitcoin and Ethereum’s remarkable recoveries last week had done enough to push the whole of the market upward. In this way, the market for crypt currencies grew quickly to over $100 billion. This had caused crypto investors to celebrate once again, pushing the market total above $1 trillion.
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But this recovery was short-lived, as it would not be sustained after the same rapid crashes. The crypto market lost over $50 billion in just one day and now holds the $1 trillion mark.
At the moment, total crypto market cap stands at $944 Billion, an increase of more than 100 billion from last week. These cryptocurrencies are currently testing critical support levels and failing to hold. This is the loss trend over the last few business days.
Bitcoin is trading now at $22,000 while Ethereum trades in the $1,400 range. Bitcoin’s footing has been lost at $22,000 since then. Their market capitalizations have fallen to $402 billion and $171 billion respectively.
Market sentiment takes a dive
Market sentiment quickly rose after the recovery of the crypto market. The first time that investor sentiment has risen in over two months was when it had escaped the extremity of fear and was no longer in the danger zone. As the economy continues to recover, sentiment scores have reached an all-time high of 30 for the second week in a row.
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The sentiment has been rising for several days before falling on Monday. The dip in sentiment saw the Fear & Greed Index return a score of 26 for the last day, signifying that investors are once again becoming wary of the market.
The bearish trend, while not fully established, is becoming more common over time. The market will follow historical trends and experience recoveries as well as pullbacks. These will result in lower highs than lows.
CNBC featured image, Chart from TradingView.com
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