Downtrends Dominate The Cryptocurrency Market, Market Cap is Being Stretched

The global cryptocurrency market is down today as Bitcoin (BTC), and the top altcoins are leading an encompassing market bearish dives. While the market is usually characterized by extreme volatilities, a visible recovery has not been seen since the start of the week when the market started slumping.

It is a known truth that the bulk of digital currencies has a correlation with Bitcoin and as such, any moves in the first to be launched digital asset usually result in a corresponding move in the majority of the altcoins.

At the time of writing, and according to CoinMarketCap, Bitcoin has shed off more than 7.22% of its price value and is exchanging hands at $46,466.03. Ethereum is down by 8.34% to $1,483.92 while Binance Coin (BNB) is trading at $225.01, amounting to 9.81% over the past 24 hours.

DeFi Tokens Not Spared

Decentralized finance (DeFi) has taken a new turn in the past year, giving rise to unique tokens of projects that are innovatively changing traditional finance. Most of the DeFi token has outperformed their peers, as more investors continue to accumulate them on grounds of a solid foundation.

They are however also correlated with Bitcoin and this current bearish market has extended to them too. Polkadot (DOT) is down 9.67% to $29.94, Chainlink (LINK), has lost 9.45% of its market value and is trading at $24.63.

More traditional DeFi tokens including Aave (AAVE) have fallen short of its all-time high value of over $559 and is trading at more than 11% below its price of yesterday. Compound (COMP) is also down by 10.90% to $387.77.

Implications on Global Crypto Market Capitalization

The falling prices of these cryptocurrencies are affecting the overall market cap, a figure that has crossed the $1 trillion milestone weeks ago. With Bitcoin’s market cap being down, the figure that provides over 60% dominance of the overall market, the overall market capitalization is also expected to nosedive.

Today, at the time of writing, the overall market cap has dropped 7.51% and is currently worth about $1.4 trillion. This figure attained a peak of over $1.8 trillion at a time amidst this ongoing bull run.

There has been a lot of activities around Bitcoin and the cryptocurrency market lately, including Coinbase’s filing to go public, and MicroStrategy purchasing more Bitcoins, while this news were unable to stir a bullish retracement in the market price movement, expectations of market recovery over the weekend has diminished. Only the twist tagged with space can revive the market in the near term.