The market capitalization of all cryptocurrencies has dropped significantly over the last 24 hours, but it’s not time to panic just yet. Unlike traditional assets, digital currencies are more volatile and can recover quickly.
Now is the perfect time to invest in cryptocurrency before the price jumps again!
The market capitalization of the 10,000 crypto assets in existence also dropped below $3 trillion to $2.77 trillion on Tuesday morning (EST).
Bitcoin’s price fell below the $60K handle on Tuesday after hitting $66K on Monday, reaching a low of $58,563 per unit. The price has since recovered some losses, increasing back above the $60K range, and has shown some consolidation.
The Bitcoin Market Cap Has Shed Billions Of Dollars In The Last 24 Hours!
In the last 24 hours, the market capitalization of the entire crypto-economy has shed billions of dollars. Bitcoin (BTC) has dropped 7.5% today, and it has fallen 10.2% for the week.
In the 24-hour trade volumes on Tuesday, BTC was trading for $60,563 per unit, valuing it at $1.14 trillion. BTC traded for $48 billion, and the majority of those trades were paired with tether (USDT).
This is followed by USD (18.75%), BUSD (6.61%), JPY (4.79%), EUR (4.45%), and KRW (2.70%).
A drop from Bitcoin’s $66K handle to just over $60K has also weakened alternative crypto asset markets. Ethereum (ETH) lost 9.2% overnight, and ether lost 11.6% on a weekly basis.
During the week ended November 4, BTC has 41.5% market dominance and ethereum has 18.3%. Most cryptocurrencies suffered losses over the period, but coins like OMI, NEXO, HT, TIME, and HNT saw very little growth.
Although spell token (SPELL), kucoin token (KCS), near (NEAR), kadena (KDA), arweave (AR), dash (DASH), and zcash (ZEC) lost between 15-22% over the past 24 hours.
Ark36 Executive: ‘Drop Results in a Leverage Shakeout Which Contributes to a Healthier Market’
Mikkel Morch, the chief executive officer of the crypto assets hedge fund Ark36, told Bitcoin.com News that the drawdown is normal as bitcoin, ethereum, and other crypto markets suffer deep losses.
The bitcoin price has yet again defied expectations, as it did last week when it hit an all-time high near $69K. Investors expected the trend to continue immediately after the price reached the all-time high.
Instead, we saw a largely sideways trend culminating in an almost 8% drop yesterday. Following the sweeping wave of enthusiasm last week, a price decrease is surprising or even concerning.” Morch continued:
Nonetheless, keeping in mind that an 8% drawdown in the crypto markets is considered normal is crucial.
Presently, the overall market structure remains largely bullish. A sudden drop in price results in a shakeout of leverage, which contributes to a healthier market poised for an uptrend in the medium term.
Bitcoin Market Predictions: What Should I Expect In The Next Few Months
Several factors indicate that the bitcoin market is currently in a bearish phase, according to Huobi Global.
On Tuesday, Huobi Global told Bitcoin.com News, “All EMAs are steeply downward, the Bollinger band has been significantly expanded, the current indicators show a high bearish sentiment in the market.”
Huobi added, from the daily level, BTC is now in a long downward trend, the short-term uptrend is broken, the daily volume has increased, the short-term trend may continue to move downward.
Huobi reported that Ethereum (ETH) market signals indicate a “high bearish sentiment in the market” in a similar market outlook report.
ETH/USD chart indicators using a 4-hour time frame show EMAs and the K-line are all running downhill.
According to Huobi Global’s bitcoin and ethereum market outlook, the upside channel in ETH appears to have been broken, and the retracement falls below the short-term support level, and the follow-up continues to examine whether there is effective support below.
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
