TL;DR Breakdown
- Bitcoin market cap drops to about $980 million.
- Ethereum and other altcoins suffer loses too.
- The decline could be due to profit-taking, analyst Josh Rager.
Yesterday was bullish for the crypto market at large as Bitcoin and other cryptocurrencies made some gains especially after Tesla’s announcement. However, the Bitcoin market cap has dropped below $1 trillion as the market corrects deeper. Also, other altcoins have dropped significantly following the drop of Bitcoin to about $51,500.
Bitcoin market cap drops amid profit-taking
When Tesla’s chief Elon Musk announced that the company has started accepting Bitcoin as a form of payment for its cars and will retain them. The news pushed Bitcoin, which was then trading around $54,000, over to the North to about $57,000. However, the price recently dived down to $51,500 resulting in over $2b being liquidated in about 24hrs.
Right now, the Bitcoin market cap has dropped below the coveted 1 trillion following the $6,000 drop experienced by Bitcoin. According to CoinGecko, the market cap of the flagship cryptocurrency is currently around $980 million. However, Bitcoin is now trading around $52,691, having experienced about a 6% drop in the last 24 hours.
Bitcoin market cap may drop further
The market cap first crossed over the 1 trillion on the 19th of February after which analyst Willy woo predicted that it would not fall below that level again. However, the market cap has plummeted below that level just days after. Analyst Josh Rager said that a possible reason could be that investors are taking profits and will later buy back when prices have dipped.
Many altcoins have suffered huge losses as well with Ethereum dropping down below $1,600. According to an on-chain analysis report by Glassnode, Bitcoin is in the second half or later stages of a bull market. This is due to several indicators suggesting that there is a decline in the number of Whale addresses holding BTC. Based on another report, there are indications that the decline of the Bitcoin market could continue.
