The crypto market slump continues with no signs of slowing down. In the past week, more than $63 billion was wiped out as major digital currencies recorded double-digit drops. This downturn has hit Bitcoin and Ethereum hard. Investors are cautious about what lies ahead.

Bitcoin (BTC) took the hardest hit. The original cryptocurrency fell from $4,300 to $3,800, a 12 percent drop. This is the lowest Bitcoin price has been. On exchanges like Kraken and Coinbase, Bitcoin’s lowest daily price even dropped to $3,456.

Ethereum (ETH) also dropped significantly. It currently has a daily trading volume of $2.2 billion, more than Bitcoin Cash (BCH) and Ripple (XRP) combined. Ethereum fell to $98, marking the first time since May 2017 that it has dropped to double digits.

With BTC at $3,456 and ETH at $98, technical indicators show both are oversold. This oversold condition might explain why Bitcoin recovered quickly—from $3,400 to $3,700 in just hours.

Bitcoin’s major price drop

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.

In conclusion

The crypto market slump continues with no end in sight, as the prices of Bitcoin and other cryptocurrencies take a significant hit. Bitcoin’s price fell from $4,300 to $3,800, marking a 12 percent drop, while Ethereum dropped to $98. This large-scale bear run has wiped out $63 billion from the crypto market in just seven days, intensifying concerns among investors about the market’s near-term recovery.

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