Large double-digit price drops are seen across the charts, with Bitcoin dropping to a two-month low of $42,000.
Most Altcoins are deep red, with double-digit price losses, and market capitalization has dropped $600 billion at one point.
Bitcoin has experienced one of its worst downturns, dropping $16,000 in a matter of hours, hitting a low of $42,000 in two months.
Altcoins see nothing but red
As usually happens when Bitcoin turns out strong, so do Altcoins. Ethereum, for example, went from a daily high of $4,670 to $3,500. After that massive dump, ETH has now stagnated below $3,916 and is 14% down for the day.
The situation with the rest of the alts is similar, if not worse, as double-digit price declines are evident on the left and right.
Some of the examples include Binance Coin (-11%), Solana (-19%), Cardano (-17%), Ripple (-21%), Polkadot (-23%), Avalanche (-22%), Earth ( – 17%), Dogecoin (-24%) and Shiba Inu (-18%).
With nearly all small and mid caps also in an adverse state, the cumulative market capitalization of all assets was dumped from over $2.6 trillion to just over $2 trillion in the CoinMarketCap. At the moment, it’s around $2.2 trillion, which still means a decline of $400 billion in one day.
Bitcoin drops to $42,000
A lot can change in the cryptocurrency market in one day. Until 24 hours ago, the most pessimistic case made for Bitcoin was that it couldn’t decisively breach $59,000, despite three attempts in one week.
However, as the asset was gearing up for another step towards that particular line, the bears came in to play big time. The primary cryptocurrency began to pour out a lot of value. First, it dropped to $51,000, which was a $8,000 a day price drop, but that wasn’t the worst.
Hours later, Bitcoin dropped to $42,000, which became the lowest price since late September.
After this massive $16,000 drop in one day, Bitcoin has regained some ground, but it’s still 17% below the day at around $47,000.
Its market capitalization, which was close to $1.1 trillion yesterday, is now well below $900 billion.
Somewhat expected, 24-hour sales soared to $2.5 billion after this heightened volatility, with 400,000 traders liquidated.
Source: Crypto Potato