Many crypto markets are still below their expectations due to the bearish 2022 trend. In the course of the crypto winter, the market has also spiked several times. The market has been reversing its declines and continues to edge away from the rallies.
In 2022, there were many other losses for investors, including the closure of businesses, downsizing employees, bankruptcy filings, and companies shutting down. To make matters worse, crypto’s continuing decline has led to billions of dollars in lost crypto market capitalization.
The overall market cap plunged below $1 trillion during the peak crypto winter. It caused massive panic among the crypto community. It rallied and eventually surpassed $1 trillion. However, the trend seems to be heading downwards again.
After Bitcoin, Crypto Market Sinks
This is due to the crypto market cap, which pushes lower limits towards falling below $1 trillion. This is not surprising given that Bitcoin’s price is again falling towards $21K. BTC traded at $21,320 on August 21st. This is a 1.3% loss over the August 20th price.
The price of Bitcoin has fallen 14% this week. This has led to the crypto market’s total cap falling toward a point it is already exceeding. Analysts wonder if that cap will remain steady at this level.
Other indicators that indicate its value are positive, aside from the recent bitcoin price crash. Bitcoin market dominance is up by 0.5%.
Market dominance is used to measure how Bitcoin and altcoins do. The slight rise in BTC dominance shows that Bitcoin is doing better than other altcoins.
It is clear that the crypto market is not in a good place. This week could be either favorable or negative, considering that Bitcoin fell 14% over the previous week. But even at its losses, BTC’s price is better than many altcoins.
Altcoins Record Massive Losses
Some altcoins and Ethereum lost price. ETH fell by 3.90% within 24 hours. Altcoins like UNI, SOL and LINK have all lost almost 5% within 24 hours.
Amongst all losses, since August 20, Celsius Network’s CEL took the lead by spiraling down by 21%. Others such as ETC and STEPN’s GMT also lost at least 6%. As the market caps push towards $1 trillion, these losses are a negative for overall market cap.
Featured Image from Pixabay. Charts from TradingView.com