Bitcoin sank $ 3,000 in just a few hours, while altcoins saw nothing but double-digit declines. Cryptocurrency market capitalization lost $ 80 billion in one day
The cryptocurrency market has experienced a huge free fall today. $ 80 billion of total capitalization evaporated as Bitcoin plunged below $ 17,000, while altcoins went through even worse with notable double-digit price drops.
The Red Sea between the altcoins
Altcoins have enjoyed the past few weeks with some notable increases. This led to annual records for many alts, including Ethereum reaching $ 620 and Ripple at almost $ 0.80.
However, the situation has suddenly changed in the past 24 hours. The phrase “everything that goes up must go down” materialized in full force when the cumulative market capitalization of all cryptocurrency assets plummeted from $ 580 billion to less than $ 500 billion in less than a day.
Crypto Market Cap. Source: CoinMarketCap
Most altcoins experienced double-digit declines. Ethereum, Binance Coin, Polkadot and Litecoin lost around 16% of the value. As a result, ETH dropped to $ 505, BNB struggles to $ 28, DOT is at $ 4.8, while LTC is below $ 75.
Cardano, Bitcoin Cash and Chainlink fell 20% on a 24-hour scale. Ripple’s fall is even more damaging, as the XRP fell 25% to $ 0.52.
Overview of the cryptocurrency market. Source: Quantify Crypto
Additional losses are evident with low and medium capitalization altcoins. Verge, which has also been rising, has fallen 35% since yesterday.
Golem (-25%), Ziliqa (-25%), Reserve Rights (-24%), DigiByte (-24%), Nano (-23%), Loopring (-22%), Algorand (-22%), ICON (-22%), Status (-22%), and SushiSwap (-22%) are just a few more representatives of double-digit losers.
Bitcoin falls, but its dominance increases
Primary cryptocurrency was not exempt from adverse price developments in the market. Bitcoin was growing very recently, resulting in a peak of $ 19,500. While the community speculated on how long it would take BTC to break its historical record, the asset decided to prove that the bulls were wrong.
In a matter of hours, BTC lost $ 3,000 in value and reached the bottom of $ 16,400. Although it managed to recover the $ 17,000 mark, BTC still fell 12% on a 24-hour scale.
While there are several possible reasons why Bitcoin may have plummeted so vigorously, there is some good news for the asset. BTC’s dominance over the market increased to 62.5% after dropping to 60% a few days ago. This became possible because altcoins sank even more than Bitcoin.
BTC / USD. Source: TradingView