In the last 24 hours, the global crypto market cap continued to crash amid a prevailing fear of an extreme shrink of the crypto market to the point of no return. According to Coinmarketcap, the global market cap dropped from $1.29 trillion in the last few days to $1.24 trillion on Wednesday. The price of all altcoins has dropped drastically, with Bitcoin (BTC), the largest cryptocurrency crashing below $29k.
In the last 24 hours, the total global cryptocurrency market volume increased by 3.44% to $80 billion, with Defi trading volume being $7.31 billion, representing 9.21% of the total crypto market volume. Also, Stablecoins volume was $70.33 billion, holding 87.68% of the total crypto market 24-hour volume, while Bitcoin fell by 3.35 % in the last 24 hours to below $29,000.
Expert Opinions on Bitcoin
Altcoins are the crypto assets performing worse than Bitcoin in the crypto market. More investors and traders are starting to sell off their Altcoins that are liable to more loss and risk in this crashing crypto market.
Darshan Bathija, CEO and Co-Founder of Vault, said, “BTC’s price dropped below the $29,000 level, while ETH’s price slid below $2000 over the last day. Alongside this dip, data revealed a spike in the supply of Bitcoin on exchanges. Usually, investors send their Crypto holdings to exchanges with the intention of selling.”
The spike in the number of Bitcoins traded on the exchanges indicates there might be further selling off the crypto in the coming days.
He continued, “The effects of US Federal Reserve Chair Jerome Powell’s latest comments on adding pressure and taking ‘aggressive’ measures to address inflation was seen in the markets. A day after his comments, the S&P 500 and Nasdaq indexes had dropped. As the traditional markets priced in the scenario, a risk-off sentiment took hold of the markets. Owing to BTC’s high correlation with the S&P, the crypto markets slid down the charts, in lockstep with the equities markets.”
As the leading crypto in the market, Bitcoin’s trend also affects other cryptos. Ethereum (ETH), the second biggest crypto, faces uncertainty from investors following the extreme crash of Bitcoin.
Although Ethereum is in an essential stage of Merging to move to a Proof-of-Stake mechanism, it will have to delay its steps to avoid a crash. Finder’s recent survey of 36 industry experts reflected concerns about the Ethereum Merge and a more comprehensive upgrade and predicted it might reach over $23,000 by 2030. However, it is currently trading at under $3,000. Any chance of a downtrend in Ethereum will allow investors to sell off to avoid any aggravated loss.
