TL;DR Breakdown
- Bitcoin (BTC) plunged to a two-month low following a 17 percent slump.
- The drop saw the BTC market cap fall by about two hundred billion dollars.
Over the weekend, Bitcoin (BTC) experienced one of its most significant dips. In less than two hours, the King cryptocurrency lost $16,000. The coin stabilized around $42,000 after the decline, a two-month low.
Furthermore, BTC’s decline coincided with a comparable Altcoins (ALTs) drop. The majority of them were in the red, according to market data. Some ALTs fell by double digits, resulting in a $600 billion market cap reduction.
The cryptocurrency market is quite volatile. And BTC’s depreciation exposes that weakness. Analysts predicted that BTC would not go through the $59,000 barrier until the decline.
BTC loses $16,000 in a bearish market
However, as soon as BTC reached the barrier level, the market went bearish. These negative tendencies are what caused the drop in the currency’s value. It first lost $8,000, closing at $51,000.
But that was only the beginning of its troubles. On Bitstamp, the currency would then fall below $42,000. The crypto’s price hasn’t been this low since September of this year.
That said, the most popular cryptocurrency has made some progress. It fought valiantly to halt the $16,000 decrease, which was the largest it had experienced in a single day. Despite this, it is still down 17 percent at $47,000.
Its market cap also plunged from near $1.1 trillion by the close of business yesterday. It is presently a little less than $900 billion. Moreover, 400,000 traders liquidated their 24-hour positions following the drop. These liquidations climbed to $2.5 billion due to the increased volatility.
The fall of BTC attracts ALTs
BTC’s crash attracted the ALTs in as well. Most of them were in the red, according to market data. Ethereum, for example, has fallen from a high of $4,670 to a low of $3,500. Following the sell-off, the price of ETH dropped to below $3,900, a 15% drop.
Other ALTs had a similar experience too. The majority of them were in ETH’s shoes, if not worse. Throughout the ALT market, there were double-digit decreases.
Again, A cursory glance at the major ALTs revealed a bleak picture. Binance Coin, for instance, has lost 13% of its value. Solana and Cardano, on the other hand, lost 18 and 20%, respectively.
Ripple and Polkadot also suffered significant losses. The former declined by 26%, while the latter fell by 25%. Finally, Avalanche, Terra, Dogecoin, and Shiba Inu lost 15, 20, 25, and 15% of their value.
The ALTs’ market cap fell as a result of the cryptos bleeding. It has dropped from $2.6 trillion to just over $ 2 trillion, according to CoinMarketCap. This figure stood at around $2.2 trillion, a $400 billion drop in 24 hours.
