It was a bang with an announcement. After a month-long upward trend, the Bitcoin price, and with it the overall market, was brought to its knees by a wave of sell-offs in yesterday’s trading. In just 24 hours, total market capitalization fell by $ 200 billion.
The ten largest cryptocurrencies are struggling with losses in the double-digit percentage range in the daily chart. After the Bitcoin price only set a new record high of $ 58,000 on Sunday, it fell to $ 50,412 at the time of going to press with a 24-hour minus of 10.4 percent. Are the bears taking control of the crypto market again?
Bitcoin course collapses
What happened in yesterday’s trading on the crypto market may have caught investors on the wrong foot, but it was already underway in advance. Since the Bitcoin price left the 20,000 mark in December, there have been no major corrections. While all altcoins have stormed from one record high to the next, Bitcoin market capitalization has broken the magical US $ 1 trillion mark.
The total value of all Bitcoin has slipped back below the symbol mark for the moment and all Altcoins have briefly turned south. Ethereum (ETH) got it worse than Bitcoin with a 24-hour price discount of 15.4 percent, as did Binance Coin (BNB), which surrenders 15.9 percentage points on a daily basis.
Crypto market is cooling down
The market has gradually overturned with reports such as Tesla’s Bitcoin entry. In just one week, the Bitcoin price gained $ 10,000 before finally hitting a new all-time high on Sunday. Profit-taking was inevitable given the tumultuous roller coaster ride.
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Like the on-chain data platform Cryptoquant via Twitter reports, there were massive inflows on all stock exchanges shortly before the crash.
The rush temporarily paralyzed some trading venues. Binance had to “temporarily withdraw ETH and Ethereum-based tokens due to high network congestion” expose. And Bitpanda too excused meanwhile for “performance problems” that caused “longer loading times than usual”.
A wake-up shot
As dramatic as the price losses may have been, the cut was necessary. Corrections are part of the market DNA, especially in the highly volatile crypto market. Bitcoin and Co. have received the long overdue cooling that allows the market to consolidate to normal.
However, there are no signs of a trend reversal with a view to the still bullish indicators. Much of last week’s capital inflows institutional investors has jammed at an average Bitcoin price of $ 48,000. BTC is unlikely to fall below this strong support in the medium term.