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As the entire cryptocurrency market value has fallen by 11% in the past 24 hours, the digital asset market experienced turmoil on Tuesday. Bitcoin fell to a low of $44,846 during the morning trading session (EST) and fell more than 18% on the last day.
After the price of Bitcoin (BTC) hovered in the $55k range and the price of Bitcoin (BTC) began to decline in the early hours of Sunday morning, proponents of cryptocurrency are watching the market closely. It was $58,354 per unit in the 12 hours before the crypto asset reached an all-time high. Since then, BTC hit a low of $44,846 on Tuesday and has been very volatile in the past 24 hours.
Today, the market valuation of BTC is below the $1 trillion mark, and its market value at the time of its issuance reached $909 billion. In the entire crypto economy, out of a total of USD 177 billion in swaps, the global BTC trading volume reached USD 47 billion.
The second largest market capitalization is still maintained by Ethereum (ETH), but at the time of writing, Ethereum has fallen by 8%. Currently, the price of each token of ETH is $1,576, and the market value is approximately $180 billion.
Tether has regained third place in the top ten, and Binance Coin (BNB) is now ranked fourth. BNB fell 14%, and each token traded at $227. The fifth place is polkadot (DOT), which fell more than 5% and the price per unit was $34.
At the same time, as crypto assets have plummeted in the past 24 hours, when Fed Chairman Jerome Powell (Jerome Powell) testified to Congress, stocks also fell. Powell does not seem to be staged by the terrible US economic outlook and rising bond yields.
The chairman of the Federal Reserve pointed out that inflation is “soft” and the central bank will continue to implement fiscal policy. Cryptocurrency analyst Ben Lilly explained in a recent blog post that this is bullish. Eli Lilly emphasized: “If the Fed does expand its purchases of US Treasuries, then this may be bullish for Bitcoin.”
Simon Peters, a crypto asset analyst at multi-asset investment platform Etoro, also said that the sell-off is part of the global economic downturn. Today, the correction of crypto assets is part of a broader sell-off in global markets,” Peters wrote in a report to investors.
Peters continued: “Driven by profit closing.” Investors are closing positions, which will bring substantial gains to many of them. However, as positions were closed and prices fell, Etoro data showed that more new investors poured in and bought bitcoin for the first time. In the past 7 days (until Monday), closed positions were 26% more than closed positions . “
The sell-off will attract more investors in the long run. However, in the short term, we will see some volatility as we do today. In this year, we still see the great potential of Bitcoin and its peers.
At the same time, after falling below US$45,000, BTC temporarily managed to recover above US$48,000. So far, people are curious about the next move of crypto assets after the crazy surge to over $58,000 in territory last week.
What do you think of the cryptocurrency sell-off this week? Let us know your thoughts on this topic in the comments section below.
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