Bloodbath: Bitcoin Crashed to $42K, Altcoins See Double-Digit Slumps (Market Watch)

Bitcoin suffered one of its worst crashes. It plummeted by $16,000 within hours, to a low of $42,000 after two months. Altcoins are in deep red, with double-digit losses and the market cap fell by $600 billion.

Bitcoin Drops to $42K

In a matter of hours, cryptocurrencies can go through a lot. Bitcoin’s bearishest case was, up until 24 hours ago: it could not break $59,000 decisively despite three attempts within a week.

The bears came in big as the asset was poised for another climb towards this line. The primary cryptocurrency began to lose value. It plummeted to $51,000. This was a $8,000 daily price fall, but it wasn’t the worst.

BTC dropped to $42,000 on Bitstamp, which was the lowest price since September.

BTC recovered some ground after the $16,000 plunge in one day. However, it is still 17% below its day-high of $47,000.

Its market capitalization is now well below $900billion, from close to $1.1 trillion yesterday. The 24-hour liquidations rose to $2.5 Billion due to increased volatility. There were 400,000 traders who were liquidated.

BTC/USD, Bitstamp. Source: TradingView
ltcoins Nothing But Red

The altcoins also suffer from the same phenomenon as BTC, which dumps hard. Ethereum fell from $4,670 to $3,500, a daily high, to just $3,500. ETH is now at $3,900, 15% lower than the previous day’s high, and has stalled below that level.

As you can see, the situation is the same for the other alts. There are double-digit price drops every day.

You can find examples such as Binance Coin (-13%) and Solana (18%).

CoinMarketCap shows that almost all alts of lower and mid-cap are also in this bad state. The cumulative market cap of all assets has dropped from more than $2.6 trillion to just under $2 trillion. It’s currently at $2.2 trillion. This still represents a 400 billion decrease in one day.

Cryptocurrency Market Overview. Source: Quantify Crypto
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