- The price of bitcoin slipped 10% in two days to fall below the $32,000 level for the first time since Jan. 11
- Other altcoins, including 7 in the top 20 Crypto joins the massive market pullback
- The total market value of all cryptocurrencies shed more than $100 billion in the last 48 hours
Bitcoin was in the headlines again this week, but for less than ideal reasons. As the bullish fever cools off, Bitcoin leads the market in a 3-day successive decline.
In that time, Bitcoin dropped from over $35,000 per BTC to under $30,000. Bitcoin and cryptocurrency traders continue to stare at a sea of red on exchanges today as major cryptos plummet.
Bitcoin Drops as Market Corrections Continue
In the top 10 Crypto, Bitcoin has seen the most price drop. Over the last 7 days, the number of cryptocurrencies has dropped by more than 17 percent. The dropped took Bitcoin from as high as $39,900 over the last weekend to as low as $29,800 yesterday, Jan. 21.
Although Bitcoin quickly recovered and now trades at around $31,700, the number one digital asset is still down by more than 10 percent over the last 48 Hours.
Shades of Bitcoin’s slump was glaring in the other top 10 cryptocurrencies. Digital assets like ethereum, Stellar, Bitcoin Cash, Ripple’s XRP, Litecoin, and Cardano all down between 5 and 17 percent for the week.
Crypto Markets Drop Over $100 Billion in 48 Hours
The huge correction which was sparked by Bitcoin whales selling off their holding has continued to drag on. As a result, the entire market cap of cryptocurrencies lost more than $100 billion in 48 hours and more than $180 million in the last three days.
As the blood of crypto street flows even deeper, Guggenheim Partners CIO, Scott Minerd, has said that there could be a longer market correction. According to Minerd, the recent decline of Bitcoin could continue and drive the asset to as low as $20,000.
On the flipside
- Regardless of the market slump, some cryptocurrencies have continued to perform well
- Chainlink and Polkadot, a rival to the second biggest cryptocurrency ethereum, have both managed to hold onto their gains over the last 7 days
- Over the last 7 days, both are 15 and 24 percent in greet territory
Just Another Correction
Bitcoin enjoyed a spectacular start to 2021, peaking at $41,900, many other Cryptos enjoyed the same as the entire market cap of the industry topped $1 trillion for the very first time. However, what the market faces now is a correction.
As a general economic principle, corrections are a natural part of any market. In the crypto market, it is all too noticeable because of the volatility of the asset class.
In an interview with CNBC, Michael Sonnenshein, CEO of Grayscale Investments explained;
f you look at Amazon in the first 3 years, you saw 50% drops in price. Bitcoin's moves are akin to that because you've got close holders of bitcoin that are releasing bitcoin to the marketplace and the buying stability is shoring up. But it's still not 100% there.
Regardless of the current market state, Micheal Sonnenshein has explained that his firm has continued to receive orders from institutional investors. Drawing a cue from the 2017 event, skeptics still worry that bitcoin is just another market bubble waiting to burst.