Crypto Markets Lost $100B in a Day as Bitcoin Plunged to $40K (Market Watch)

Bitcoin tried its hand at $43,000 yesterday but was violently rejected at that point and dropped by almost $3,000 in hours. Most altcoins are also well in the red today, with Ethereum close to breaking below $3,000 and BNB sitting just north of $400.

Bitcoin Failed at $43K

Ever since the early Monday crash, in which the price of bitcoin dumped below $39,000 to mark a monthly low, the landscape around the asset seemed substantially more positive.

The cryptocurrency recovered all losses almost immediately and even spiked above $41,000 on Tuesday. A day later, it jumped to the January 2021 all-time high of $42,000, where it met some resistance but was ultimately able to overcome it as well.

As such, BTC kept climbing, and yesterday it tapped an 11-day high at just under $43,000. However, this is where the situation changed for the worse.

Instead of heading further north, bitcoin started to lose value rapidly. In a matter of hours, it lost around $3,000 and even briefly dipped beneath $40,000 (on Bitstamp).

As of now, it stands just over that level but being more than 3% down on the day means that its market capitalization has declined to approximately $775 billion.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Alts See Red

The alternative coins were also flying high in the past few days, but, similar to bitcoin, have turned red now.

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Ethereum jumped to a 10-day high of its own yesterday when it was close to overcoming $3,200. However, it was rejected at that point and now struggles to remain above $3,000.

Binance Coin neared $430 at one point, but it’s also close to dropping below a round-numbered milestone ($400).

Ripple, Solana, Terra, Cardano, Avalanche, Polkadot, Dogecoin, and Shiba Inu have also retraced only a 24-hour scale.

More losses come from 0x (-18%), Kava (-11%), Zilliqa (-11%), EOS (-10%), Audius (-7%), Kusama (-7%), and others.

Ultimately, the crypto market cap dropped by $100 billion since yesterday’s peak and is now below $1.9 trillion.

Crypto Market Outlook. Source: QuantifyCrypto
Crypto Market Outlook. Source: QuantifyCrypto

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Cryptocurrency charts by TradingView.

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