Just recently, the crypto market capization fell below $1 trillion. We’re not surprised, given the recent negative turn of events. Bitcoin has fallen below $20k. BTC is now at $20.143 Altcoins are also affected.
Ethereum, second most valuable crypto currency, also saw some price drops. As of August 29, ETH’s price stands at $1,537 after gaining a 7% growth.
These price losses caused crypto market capital to drop below $1 trillion. The total amount is $950 billion, after having lost $50 billion over 24 hours.
Bitcoin: Is there any hope?
BTC chart shows some recovery after its plunge. But there’s still doubt whether it can sustain the gradual climb back to $20K.
Bitcoin fell below $19500 before recovering to $19900. However, it still dropped back to $198,847. So, it’s hard to think that the upward momentum will continue, given the fluctuations.
However, there are other indicators that indicate Bitcoin’s success. Bitcoin dominance has increased over the past 24 hours. This indicates that Bitcoin is outperforming altcoins, even though it’s falling.
Altcoins: What is the Situation?
The Bitcoin market has one thing in common: altcoins are affected by the Bitcoin movement. BTC moves bullish and almost all altcoins follow suit. Since Bitcoin lost some value, many other cryptocurrency have followed suit.
This combined effect led to a drop in market cap. Altcoin’s chart has seen slight declines.
Quantify Crypto’s chart shows how these altcoins lose rather than gain. ADA fell 3.7% after which it gained 4%. Ethereum however has gained 3%. BNB is down by 1% and AVAX and XRP are both falling on the chart. However, some cryptocurrencies seem to be doing very well.
Are the Bearish Trends Still Continuing?
The crypto market has entered into the “Extreme Fear” state. Things went sour at the August 26 Federal Reserve Annual Meeting. Fed Chair Jerome Powel chose to adopt a hawkish approach in order to combat inflation, rather than being dovish.
Following the meeting, crypto markets began to move in a downtrend. Stocks also lost some percentages after the speech. The bearish trend could be extended if Feds adopt the Volcker Esque approach, as Neel Kashkari suggested.
Featured Image from Pixabay. Charts by TradingView.com