The adverse price movements in the cryptocurrency space are yet to end, as bitcoin slumped to a new 18-month low beneath $25,000. The altcoins are in a state of freefall as well, with many of them charting more double-digit price losses. This resulted in a massive decline in the total crypto market cap, which dipped below $1 trillion today.
Bitcoin Dumps to 18-Month Low
The US inflation news (record-breaking 8.6% YoY increase) released on Friday started a downturn for bitcoin, which initially dropped from $30,000 to $29,000 in hours.
However, what unfolded (and continues to transpire) in the following few days is significantly more violent. Bitcoin’s freefall intensified with the asset dropping to $27,000 on Saturday and $26,000 on Sunday, causing over $500 million in liquidations for two days straight.
The latest price dump came hours ago when BTC slumped beneath $25,000 and plummeted to an intraday low of $24,500. This is the lowest price position the cryptocurrency has seen since December 2020.
Being more than 10% down on the day means that its market capitalization has gone deep below $500 billion. The only positive news now is that BTC’s dominance over the altcoins has remained high above 47%, as they have suffered even more.
BTCUSD. Source: TradingView
Blood on the Altcoin Street
As it typically happens when BTC heads south hard, so do the alternative coins. Most were well in the red during the weekend, but they have kept plunging on a daily scale.
ETH continues to see new lows. It stood above $2,000 a week ago but has lost over $700 since then and trades well below the 2018 ATH now. A 15% daily decline has pushed the second-largest crypto below $1,300.
BNB is down by 11% in a day and sits at $230, while XRP (-10%) is at just over $0.3. Cardano, Solana, Polkadot, Dogecoin, TRON, and Shiba Inu have all dropped by double digits as well.
Even more losses are evident from NEXO (-27%), Fantom (-23%), Curve DAO Token (-21%), Kava (-18%), STEPN (-18%), Waves (-17%), THORChain (-17%), and many others.
Ultimately, the cumulative market capitalization of all cryptocurrency assets dipped below $1 trillion for the first time in over a year. The metric has seen $300 billion gone in the past several days.
Cryptocurrency Market Overview. Source: Quantify Crypto
Marla Brooks – Financial Analysis
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