On Wednesday, the cryptocurrency markets experienced a bloodbath as top coins suddenly dropped in price, wiping out their entire week’s worth of gains. On the day, Bitcoin’s price dropped to $17,700, matching its November 2020 low.
This means that Bitcoin has returned its investors to square one after erasing all profits it promised in 2021. At the close of trading today, Bitcoin was down 12% and Ethereum was down 20%. A large proportion of BTC holders are currently in the red, and the king cryptocurrency is more likely to fall in value than to increase.
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Furthermore, the leading ten cryptocurrencies have dropped by double digits, with no sign of a quick recovery. For the past 11 months, investors have had to take the hit of the market’s downturn.
The total value of all cryptoassets on the market has also dropped precipitously, wiping out billions of dollars in value in less than 24 hours.
Also Read: Crypto Crash: Here’s What happened in the last 24 hours
How Much Has The Crypto Markets Lost in Value?
Recently, the markets have regained $1 trillion in market cap, but they still lag far behind the target. In less than 24 hours, the value of the global market went from $1.03 trillion on Tuesday to $899 billion on Wednesday. In one day, the market lost nearly $101 billion, or 12.7% of its value.
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The following graph depicts the dramatic drop in the value of the cryptocurrency market on Wednesday. Due to widespread bearish sentiment, a return to previous levels may be difficult.
Although there are a number of cryptocurrencies where buying the dips could be profitable, extreme caution is warranted before making any large purchases. Since a recession is looming, the value of cryptocurrencies may fall precipitously.
Additionally, Fortune 500 companies are reducing headcount, which could be an indicator of an impending economic downturn.
Source: Watcher
Disclaimer: This isn’t financial advice; it’s just for education. Crypted Crypto can’t guarantee its accuracy. Every investment and trade carries some risk, so always do your own research. Invest only what you can afford to lose.
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