bitcoin drop Archives

As the effects of the recent bloodbath in the crypto market started vanishing, the fledgling Bitcoin, after a long time, reached near the $32,000 level yesterday. But again, it failed to hold above $30,000.

Following nine red weekly candles, BTC retested $31,700 in the first green week on June 06 and then plummeted sharply in the next 24 hours at $29,000. Fortunately, BTC’s price is rising again and currently trading above $31,000. The fall of the fledging coin leads altcoins to face dumps, too, mainly affecting the prices of SOL, AVAX, and BNB.

Related Reading | Institutional Investors Refocus On Bitcoin As Market Losses Intensifies

Continuos price drops, which nearly declined the asset by over 6%, signified that investors were taking profits after a long-lasting bearish trend.

In the prior uptrend of BTC price in the last days of May, the Bitcoin bulls pushed the price upward to the $32,000 level from $30,000. A day after claiming the new high, BTC fell around $29,000 again on the next day.

Again, seeing an uptrend in the price for the past few days, the digital asset started to lose its value on June 07. However, in the previous weekly green candle, BTC’s price remained above and beneath $30,000.

When the most recent downtrend started, Bitcoin’s value bounced below $32,000. At a time when investors were expecting another leg up, it continued falling and lost around $3,000 from its value in just hours. Investors started to liquidate their assets, which further dropped the price to $29,000.

Bitcoin’s price continues rising dramatically and now trades above $31,000. | Source: BTC/USD price chart from TradingView.com
Bitcoin Is Bullish Again?

At the time of writing this news, BTC’s price has been fastly retaking its position above the $31,000 level again. The previous sharp drop that came yesterday resulted in BTC’s market cap reaching $565 billion, but the cryptocurrency still had more than 46% dominance over altcoins.

Also, altcoins performed well in the market before the Bitcoin price decreased aggressively. The second biggest coin by market cap, Ethereum (ETH), hit significant gains, reaching its value near $1,900.

Benefiting from the BTC price booms, it managed to regain its value to some extent and currently fluctuates above $1,850 and is still down by over 8%.

BNB, facing the U.S. Securities and Exchange Commission (SEC) investigation over the platform’s possible illegal sale of an unregistered security when it launched its initial coin offering (ICO). BNB lost 9% of its value following the BTC drop, bringing the BNB’s value under $300.

Polkadot, Solana, Cardano, and Avalanche followed similar drops. Similarly, other cryptos that turned red with larger cap-alts include Ripple, Tron, and Dogecoin. More digital assets that took losses are THORChain, Aave, and many more.

Related Reading | Glassnode: Bitcoin Long-Term Holders Own 90% Of Supply In Profit

The crypto market cap has ultimately experienced a decrease of $80 billion in one day, bringing the figure to $1.2 trillion. Bitcoin showed a positive correlation with equities. Nasdaq futures saw a 0.95% decline and Bitcoin plummeted to $29,000 from $31,700.

Featured image from Pixabay and chart from TradingView.com

December has turned out to be a red month for bitcoin and other indexes as sell-offs have rocked the crypto space. Bitcoin and altcoins alike have recorded numerous losses tied to investors selling off their holdings and hunkering down for what looks to be the beginning of a drawn-out bear market. Some have however suffered more than others in a more that has turned bloody for investors.

All across the market, indexes continue to record double-digit drops, signaling no improvement from the previous week as losses had also risen to the double digits. Losses have run even higher for the past seven days with the small cap index taking the biggest hit of all.

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Double-Digit Losses Rocks The Market

Bitcoin has suffered significant losses since the crash at the beginning of the month. The digital asset was pushed towards the low $40,000s and has struggled to move out of this price range since then. On the index front, the asset has not done too well either as it has recorded losses up into the double-digits and much higher than that recorded for the previous week.

Bitcoin alone saw a 20% loss for a seven-day period, up 5% from the previous week’s loss of 15%. This has made it one of the hardest-hit digital assets in the space despite maintaining the largest market share.

BTC drops 20% in seven days | Source: Arcane Research

The other indexes were not left out of the onslaught, all continuing the trend of double-digit losses. For a seven-day period, the Mid Cap Index held up best out of all the indexes but not by a wide margin. The Large Cap Index mirrored bitcoin’s losses with a 20% loss for the week.

The Small Cap Index saw the most losses for the week with a 28% loss, marking the worst performance of all the indexes for the month of December.

Bitcoin Market Dominance Drops

Bitcoin has maintained the largest share of the cryptocurrency market. However, this number has continued to drop as months go by. Five years ago, bitcoin had controlled about 90% of the total market share. Today, it has dropped to less than 50% of the market share it used to command, evidenced in the market dominance of the digital asset.

BTC begins another recovery trend | Source: BTCUSD on TradingView.com

Some of the biggest coins by market cap have outperformed bitcoin for the last week. This outperformance has translated to an encroachment on the market dominance of bitcoin. Once again, BTC’s market dominance has dropped close to 40%, a crucial point that altcoins have not been able to break.

Related Reading | Bitcoin Leads As Markets Sees Record Outflows. Bear Market Incoming?

Nevertheless, altcoins have enjoyed significant growth in the way of market dominance given that at the start of the year, bitcoin’s market dominance was as high as 73%. With the year drawing to a close, altcoins have managed to steal over 30% dominance from BTC, and 2022 may be the year that it finally breaks below the 40% resistance point.

Featured image from CNBC, charts from Arcane Research and TradingView.com