Crypto market sheds $50 billion in one day as reversal begins

Crypto market sheds $50 billion in one day as reversal begins

The crypto market has now lost more than $50 billion in a single day as the market lost a string of recoveries. This was expected for the market due to the large recoveries recorded in a short period of time. This brought the crypto total market down to an important level.

The crypto market has fallen below $1 trillion

The incredible recovery of Bitcoin and Ethereum last week did enough to push the entire market higher. As a result, the crypto market quickly added more than $100 billion during that time. This pushed the total market cap above $1 trillion once again, much to the delight of crypto investors.

Related Reading | Ethereum Weekly Net Flow Points to a Rising Accumulation Trend

However, this recovery would prove to be short-lived as the declines were just as rapid. In the span of one day, the crypto market lost more than $50 billion after the crash and has now lost control of a $1 trillion market cap.

Currently, the total cryptocurrency market capitalization is $944 billion, a loss of more than $100 billion from last week. The losing pattern of the last few days now sees the cryptocurrencies in the space testing an important support level and mostly failing to hold.

Bitcoin has since lost its footing at $22,000 and is now trading in the low $21,000s, while Ethereum has fallen into $1,400 territory. That reduced their market capitalization to $402 billion and $171 billion, respectively.

Market sentiment plunged

As the cryptocurrency market recovered, market sentiment rose rapidly. For the first time in two months, investor sentiment has successfully moved out of extreme fear territory to sit in fear. As the recovery continues, the sentiment score rose to a new two-month high of 30 last week.

Related Reading | More than 57,000 traders liquidated as bitcoin fell below $22,000

Sentiment has been consistently up over the past few days until Monday, when prices began to fall. He saw the decline of feelings Index of fear and greed returned a score of 26 for the last day, which means that investors are once again becoming cautious about the market.

Although the bear trend is not yet fully established, it is gradually becoming the norm during this time. Following historical trends, there will be recoveries and pullbacks, causing the market to establish lower highs and lower lows.

Featured image from CNBC, chart from TradingView.com

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