Bitcoin is trading at $ 32,000, and the total market capitalization has lost more than $ 200 billion. The next weekend began with another red candlestick, characterizing the decline in the Bitcoin exchange rate and the entire cryptocurrency market. The leading asset lost five thousand dollars in a couple of hours. And altcoins, following the trend, moved after their king. At the same time, Ethereum fell to $ 1,700, and the total market capitalization lost more than $ 200 billion in a day.
Bitcoin is again $ 30,000
The flagship cryptocurrency was trading at $ 32,000 yesterday morning, but by the evening the price dropped to the $ 30,000 zone, having lost almost 7 percent. Although today it has recovered to its previous level again.
It’s almost becoming a tradition for BTC to head south at the start of the weekend. The cryptocurrency looked slightly wrinkled yesterday after recovering from a mid-week crash and trading above $ 35,000, but still a sharp decline seemed to be avoided.
$ 35,000 is the highest price in four days, but the bears have not allowed further gains. In a matter of hours, Bitcoin lost almost $ 5,000 in value and dropped below $ 31,000. Although this was followed by a rebound and a slight recovery, the bears didn’t release the leading asset and pushed it even lower.
The impact of the Chinese crackdown on cryptocurrency miners and traders on the price of BTC continues. Along with a low hash rate that has lost more than 50 percent of its ATH of 171 EH / s. These are the main factors that feed the bears.
Bitcoin dominance in the market remains strong, but only because altcoins are also testing the bottom. BTC’s market cap is below $ 600 billion again.
Altcoins copy Bitcoin movements
As is usually the case when their leader has increased volatility, alternative coins perform even worse. Ethereum is a prime example of this. For several days he tried to get close to $ 2,000, but a 9% drop caused the second largest cryptocurrency to fall below $ 1,800.
Binance Coin, which surpassed $ 310 a few days ago, is also in the red. On a 24-hour scale, BNB has dropped 8% and is currently trading at around $ 270.
Aside from Celo, which is up 25% since yesterday, most low- and mid-cap altcoins are also in red.
Ultimately, the combined market capitalization of all crypto assets lost more than $ 200 billion in a day, now well below $ 1.3 trillion.
Independent market analyst Filbfilb believes that altcoin holders risk doubling their losses if the Bitcoin price corrects another 30%.
It should be noted, though, that Bitcoin’s plunge in May and June has brought it down to 5.71% YTD. Meanwhile, while the top-cap altcoins have been falling at the same time, their year-to-date returns have been much better.
Thus, altcoins have provided their holders with better profit opportunities than Bitcoin.
At this point, many analysts who were previously Bitcoin optimists have changed their minds following the latest cryptocurrency bearish correction.