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The cryptocurrency economy slid significantly on Thursday afternoon (ET), as the aggregate market cap of all cryptocurrencies shrank by more than 10% during yesterday’s trading sessions. More than 12 hours later, some of the major crypto assets are still down in value between 4-12% and some digital currencies have experienced even greater losses during the past 48 hours.
Things are changing rapidly in the crypto ecosystem, as digital currency advocates faced extremely volatile prices this week. For example, bitcoin (BTC) hit a high on September 1, as prices hit $ 12,044 per coin on Tuesday.
The crypto asset has since plummeted to the downside. BTC was hovering around $ 11,200 on September 3, but once again shuddered to a low of $ 10,000 the next day. Bitcoin (BTC) was down 5.4% on Friday, over 10% in the past seven days and down 11% in the past 30 days. At the time of publication, BTC fluctuated between $ 10,250 and $ 10,400.
Following the decline in BTC, ethereum (ETH) has also lost a fair share of value over the past 48 hours. ETH is down more than 5% today as the crypto asset is trading for $ 395 per coin. Ethereum only lost half of a percentage during the week and is still up more than 10% over the past 30 days.
Tether removed XRP from its third market capitalization position with a valuation of approximately $ 13.7 billion across all outstanding USDT. XRP lost 2.5% today and the crypto asset is currently trading for $ 0.25 per token.
Position number five now belongs to the Polkadot (DOT) project with its market valuation of $ 4.5 billion. Chainlink (LINK) holds sixth position trading for $ 12.67 per coin and has a market cap of around $ 4.4 billion on Friday.
The Bitcoin Cash (BCH) markets fell more than 5% today as each BCH trades for $ 235 per coin. BCH has fallen by 7.5% in the past 90 days, by more than 20% in the past 30 days, and one-week statistics show that bitcoin money has fallen by 12.8%.
On Twitter and forums like Reddit, cryptocurrency advocates are trying to understand why digital currency markets have shaken. Some people think the price could go down as there is a $ 9,700 of CME gap while waiting.
A CME gap occurs when the Chicago Mercantile Exchange’s Bitcoin futures markets stop trading over the weekend, but futures prices do not reflect spot prices that rose until the opening of the following week. Not all CME and futures gaps are filled, but sometimes they do and some large price drops in the crypto economy have been attributed to CME price gaps.
Other theories have pointed to miners selling bitcoins as BTC deposits from mining operations in exchange wallets were as high as they had been in weeks. Resulting data Outflows from mining pools via large pool operations such as Poolin, Slush and Haobtc show that it is a possibility that bitcoin miners have sold a good number of coins during the past 48 hours.
Analyzes by Glassnode and Cryptoquant indicate that bitcoin miners transferred a large number of BTC on Thursday, which corroborates the miners’ sell-off theories.
Another cause people are looking at during the landfill is the seething decentralized finance economy (defi). A large number of cryptocurrency holders have complained about ETH’s massive transaction fees, and a lot of money has been left out since September 1st.
On Tuesday, statistics from defipulse.com show that the total frozen value (TVL) in defi was $ 9.5 billion, but has since dropped to $ 8.8 billion on Friday. Many cryptocurrency speculators assume that a large number of defi players may have abandoned their positions in the past few days.
Finally, the Crypto Fear and Greed Index (CFGI) has also changed a lot in the past few days. Last month the chart read “greed” and similarly the chart was reading “greed” during the last week. However, just before the big price drop, the CFGI slipped from “extreme greed” to “fear” during the past 24 hours of trading.
Despite this, the overall market valuation of all 7,000+ cryptocurrencies is still well above a quarter of a trillion dollars at $ 326 billion. Alongside this metric, global trading volume is worth $ 49 billion, but tether (USDT) commands most of the volume today.
However, many traders view the background of stablecoin economy funds as a positive outlook as many believe money will eventually flow back to more decentralized crypto assets like bitcoin (BTC) and ethereum (ETH).
What do you think of the cryptocurrency markets that have experienced a huge drop in value in the past 48 hours? Let us know what you think about this topic in the comments below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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