The Crypto Market Cap Dropped Below 1 trillion, the total cryptocurrency market capitalization is at around $970 billion and continues to decrease as more and more altcoins are still struggling.
This comes after a brief period of stability and even slight growth in the crypto markets, which had many hopefuls that a sustained bull run was on the horizon. However, it now appears that those hopes were premature and that the bears may still be in control of the overall market trend.
The total cryptocurrency market capitalization dropped below $1 trillion on Saturday. Altcoins were also suffering, with Bitcoin dropping below the coveted $20,000.
Bitcoin is worth less than $20,000
The total Crypto market cap is below 1 trillion and Bitcoin again lost value below $20,000.
This move comes as a bit of a surprise as most analysts were expecting Bitcoin to continue its march towards $30,000 after it break the $20,000 mark just a few weeks ago. However, it seems that the market is not ready to make such a move just yet and that BTC will have to consolidate at its current level before making another attempt at breaking higher.
The past 24 hours ago, saw about $28 million worth of bitcoins liquidated, which is a negligible number considering the volatility has also died down. At this time, ETH futures traders seem to be a lot more prevalent.
Bitcoin is Bleeding Out other Cryptocurrency Prices
There was no significant news or developments over the past day that could explain the steady decline in prices. Instead, it seems that investors are simply selling off their positions in a broad-based sell-off. This is typical behavior in bear markets, as investors lose confidence and become more risk-averse. While there have been some sharp rallies in individual coins, such as Ripple (XRP), these have been quickly sold off and prices have returned to their downtrend.
The second-largest liquidation order had a face value of $1.55 million and took place on BitMEX. In total, about $4.41 million worth of ETH was liquidated on the two exchanges over the 24-hour period.
“ETH’s price decline led to a significant number of liquidations, said one analyst. “The largest single order accounted for nearly 2% of all ETH liquidations.”
According to another analyst, the majority of ETH liquidations occurred on the margin trading platform BitMEX. “BitMEX is responsible for over 60% of all ETH futures contracts traded,” they said.
The majority of the top 50 cryptocurrencies by market capitalization are in the red at press time. However, losses seem to be rather mild, with most digital assets down less than 3%. Nevertheless, some coins have seen more significant price declines.
Frequently Asked Questions
What is the lowest market cap for crypto?
The lowest market cap for cryptocurrency is currently less than 1 billion dollars, but it really depends on what you classify as “crypto.” With more than 2000 cryptocurrencies available, the space fluctuates too often to be able to give a definite answer.
What does a crypto’s market cap mean?
Market cap is short for market capitalization, and it’s the total dollar amount of coins in circulation multiplied by the price of one coin.
What is a good market cap for crypto?
As of now, the ultimate measure of a cryptocurrency’s worth is its market cap. A cryptocurrency with a high market cap that is falling will be more stable than one with a low market cap that has seen a sudden spike in its valuation.