Crypto Market Loses $63 Billion in 7 Days as Bitcoin, Ethereum Drops Even Further
The slump in the crypto market is far from over and there seems to be no end to it. In the past week, more than $63 billion has been wiped out from the crypto market as the value of major digital currencies record drops in the double-digit.
The hardest hit is Bitcoin (BTC), of course. The original cryptocurrency, which dominated the cryptocurrency markets, fell from $4,300 to $3,800; a drop of 12 percent that makes it the lowest Bitcoin has ever been. On fiat-to-cryptocurrency exchanges like Kraken and Coinbase, the price of Bitcoin at its lowest daily point fell to $3,456.
Not left out is Ethereum (ETH). The cryptocurrency, which is presently demonstrating a daily trading volume of $2.2 billion that is larger than the combination of Bitcoin Cash (BCH) and Ripple (XRP), dropped to $98. This drop will make it the first time since May 2017 that the digital currency has fallen to a double-digit.
Now with BTC at $3,456 and ETH at $98, “technical indicators” are pointing out that both major virtual assets show oversold conditions. This oversold conditions can also be a possible reason why Bitcoin recovered rather fast “from the $3,400 mark to $3,700 within hours.”
With the price of BTC at $3,456, the cryptocurrency is down from its viral pinnacle at $19,500; an 82.2 percent drop. When Bitcoin first dropped to $4,000, there were speculations by investors that the price was going to drop even further because at $4,000, “Bitcoin was only down 79 percent from its all-time high.”
Records have shown that on average, Bitcoin usually drops 85 percent while undergoing a major correction as seen in past price fluctuations in 2011, 2013, and 2015.
So, when Bitcoin dropped below the $4,000 mark, investors began looking for a “short-term bottom” in the cryptocurrency price trend.
In the past, the digital currency market has seen a large-scale bear run. Even though the present crypto market is vastly different from the past markets due to the presence of regulators, liquidity providers, and prominent financial institutions, the huge slump experienced by the major cryptocurrencies will need a long period of recovery.
There seems to be no end in sight as the price of Bitcoin and other cryptocurrencies take a huge hit. Bitcoin’s price fell from $4,300 to $3,800, a 12 percent drop while Ethereum dropped to $98. The large-scale bear run has wiped out $63 billion from the crypto market in just 7 days.
To keep up with the latest news and development in both cryptocurrency and blockchain technology, subscribe to the ICOholder’s newsletter.