- Cryptocurrency market loses $22 billion
- Bitcoin price drops towards $10,447
- Altcoins dropping with bitcoin
- Both traditional financial and crypto markets decline
- Global markets react to increased COVID-19 cases
As Bitcoin price slid by about 5 percent over the past 24 hours, both the cryptocurrency industry and traditional stocks and financial markets dipped today. The recent dip is a result of a fresh recession triggered by the increasing number of coronavirus patients. As a whole, the world’s cryptocurrency industry lost a total of $22 billion in market capitalization, with more than 90 percent of the top 100 sliding sharply.
Cryptocurrency investors and enthusiasts will be keenly watching the market, having in mind the March 12 market crash. During the pandemic-driven market crash in March, the Bitcoin price dropped for two consecutive days, with the cryptocurrency market shedding more than 50 percent of its total value. Notably, both the old school financial, stocks and equities were similarly impacted.
Today, an analogous second wave appears to be shaping up with the Dow Jones Industrial Average shedding about 800 points. The significant decline resulted from the panic created by the rapid expansion of the COVID-19 pandemic. Although bitcoin recovered, the last week of September is somehow shaping to be a messy one similar to the initial week when Bitcoin’s price saw its worst decline since March.
Bitcoin price technical analysis
The BTC/USD pair failed to clear out the strong rejection at $11,000 after climbing towards $11,100 over the weekend. The bitcoin price has been on a descending trend since reaching last weekend’s climax, although the world’s top digital currency is finding an anchor point over the $10k price level. However, if the bears manage to sink the price further below the $10k price level, it will come days short of breaking its 2017’s milestone of 63 days in a row above the $10,000 price level.
King crypto leading his kingdom into a bloodbath
The entire cryptocurrency market is equally in misery as bitcoin price plunged. Ethereum price plunged by over 10 percent prior to setting up camp near the $337 price level. Newbie token Polkadot dumped almost $15 percent of its value to discover $4 lows. Moreover, the Binance coin plunged by more than 10 percent of its value within 24 hours to reach $23.
On the other hand, the DeFi market was also affected by the recent coronavirus-triggered dip. Chainlink’s governance token, LINK, which is among the best performing crypto in 2020, shed approximately 15 percent of its value. Additionally, Yearn Finance (YFI) tokens declined by about 25 percent in the last 24 hours. Both UNI and Sushi tokens lost at least 15 percent of their price.
Like the March cryptocurrency market wreck, the current declines seem to be massively connected to the dump in the traditional financial markets. Although several factors impact the markets, the main factors point towards the spike in the number of COVID-19 cases in the key trading nations such as the United Kingdom, France, and Spain. This might have aggravated the phobia of a protracted recession across the world.
The second main factor is the leakage of the FINCEN papers that reveal how the financial institutions and regulators in the United States have been unsuccessful in preventing over $2 trillion in dirty money from getting into the financial system. Such matters make people somewhat tense about where they are placing their funds.
On the other hand, the DeFi market was also affected by the recent coronavirus-triggered dip. Chainlink’s governance token, LINK, which is among the best performing crypto in 2020 shed approximately 15 percent of its value. Additionally, Yearn Finance (YFI) tokens declined by about 25 percent in the last 24 hours. Both UNI and Sushi tokens lost at least 15 percent of their price.