The entire market capitalization for all the crypto assets has fallen below $3 trillion to $2.77 Trillion in the past 24 hours. This is a significant drop in cryptocurrency markets. After tapping $66K on Monday, bitcoin’s price slid below the $60K handle to a low of $58,563 per unit. After the steep fall, bitcoin’s price has recovered some losses, rising back above the $60K range and has started to show some consolidation.
Bitcoin, Ethereum and Top Cryptos Experience Double-Digit Losses within 24 Hours
The market capitalization of all crypto-economies has dropped by billions over the past 24 hour, causing digital currencies to lose value. BTC (Bitcoin) has declined 7.5% over the past 24 hours and 10.2% in the entire week.
BTC currently trades for $60,563 per Unit and is valued at $1.14 Trillion. BTC’s 24-hour trading volume was $48Billion on Tuesday. 52.3% of these trades were paired with USDT (tether). The USD (18.75%) is next followed by BUSD (6.9%), JPY (4.45%), EUR (4.59%), EUR (4.79%), KRW (2.7%).
Bitcoin’s drop from the $66K handle to just above $60K has also caused the myriad of alternative crypto asset markets to falter. Ethereum (ETH) lost 9.2% over the night, while weekly statistics show that ether has fallen 11.6%. While BTC has a dominance score of 41.5%, ethereum’s market is 18.3% of the entire crypto economy. Although most digital currency markets saw losses, some coins, such as OMI (OMI), Nexo (NEXO), HUBIO TOKEN (HT), wonderland(TIME), and Helium (HNT), suffered modest losses.
Crypto assets such as spell token (SPELL), Kucoin token(KCS), near, NEAR), Kadena (KDA), arweave [AR], dash (DASH), zcash/ZEC] have experienced losses of between 15% and 22.4% in the past day.
Ark36 Executive: ‘Drop Results in a Leverage Shakeout Which Contributes to a Healthier Market’
While bitcoin, Ethereum, and many other crypto markets are suffering deep losses, Ark36 executive Mikkel Morch from crypto assets hedge funds told Bitcoin.com News that this drawdown was normal.
“Yet again, bitcoin has done what it does best – defy expectations,” Morch said. “After hitting an all-time high near the 69K level last week, the overall investor expectation was that the trend would immediately continue. We saw an almost 8% decline yesterday, despite a generally sideways trend. Such a price decrease may seem disappointing or even concerning given the sweeping wave of enthusiasm the markets experienced just last week.” Morch continued:
But, it’s important to note that a drawdown of 8% is considered normal in crypto markets. The overall bullish market structure appears to be intact at this time. In reality, sudden price drops can cause a leverage shakeout that contributes to a better market which is more likely to continue the uptrend over time.
Huobi Global: Indicators Show ‘High Bearish Sentiment in the Market’
Huobi Global has released fundamentals of the Bitcoin market that indicate that market sentiment is bearish. “All EMAs steeply downward, Bollinger band opening significantly expanded, the current indicators are indicating a high bearish sentiment in the market,” Huobi Global told Bitcoin.com News on Tuesday morning. “From the daily level, BTC is now in a long negative line, the short-term uptrend has broken, daily volume is enlarged, the short-term trend may continue to move downward, pay attention to the support below,” Huobi added.
In a similar market outlook report, Huobi noted that ethereum (ETH) market signals also indicate a “high bearish sentiment in the market.” ETH/USD chart indicators using a 4-hour time frame show EMAs and the K-line are all running downhill. “From a daily perspective, the upside channel of ETH may be broken, and this retracement falls below the short-term support level, and the follow-up continues to look for whether there is effective support below,” Huobi Global’s bitcoin and ethereum market outlook concluded.
Are you concerned about crypto markets’ downturn and how the economy has lost billions of dollars in 24 hours? Comment below and let us know how you feel about the subject.
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