The prices have finally broken out and perhaps faster than expected. However, it is down. The cryptocurrency market has taken two major blows in recent hours, causing the market to lose a whopping $200 billion.
Concerns about tighter regulation in the US and China, declining market activity, institutions showing less interest, miners dumping en masse, Elon Musk FUD and more all seem to be contributing to a sluggish market that is causing the bears to take the lead again. Total market capitalization fell more than 11% last night from $1.75 trillion to $1.55 trillion.
Bitcoin (BTC) was already in a slight downward trend yesterday afternoon, bringing the price back below $36,000. Towards the end of the evening, bitcoin plummeted all of a sudden from $35,500 to around $33,750.
Overnight, the price initially held around that price and fluctuated between $33,500 and $34,000. However, in the early hours of this morning, another two blows were added and the bitcoin price dropped further from $33,750 to $32,500.
Meanwhile, trading volume is gradually increasing, suggesting that some investors are already buying the dip. At the time of writing, bitcoin is also climbing back above $33,000, but volume is still low and looking bearish. A further drop to $30,000 or even below to $29,000 or $26,000 would not be a complete surprise.
Ethereum (ETH) has shown a declining correlation with bitcoin in recent days, but increased again last night. The ether price initially rose to USD 2,850 yesterday, but then, like bitcoin, entered a downward trend. By late evening, ether had fallen to $2,700 and then suffered a blow that sent the price plummeting to $2,600. There, ether was able to hold out for a while, but the second blow then brought the price to $2,450. Trading volume is slowly increasing and ether is climbing back to USD 2,500, but whether a bottom has been found here is highly questionable.
Many altcoins are even deeper in the red today. Most stocks have lost between 10% and 20% of their value in the past few hours. VeChain (VET) and Polkadot (DOT) lose 15%, EOS (EOS), Filecoin (FIL), Polygon (MATIC), NEO (NEO), Zilliqa (ZIL), Internet Computer (ICP), and Shiba Inu (SHIB) lose 16%, Cosmos (ATOM), Compound (COMP) and Tezos (XTZ) lose 17%, Qtum (QTUM) Siacoin (SC), Iota (MIOTA), Thorchain (RUNE) and Solana (SOL) even 18%. The biggest loser today is BakerySwap (BAKE) and is 22.5% in the red.
Yet we also see two risers on the market today. Theta Fuel (TFUEL) hit a new all-time high (ATH) of $0.569 last night and is still up 12% this morning after heavy swings. The biggest riser today is Arweave (AR), the AR price is already making big jumps last night and has just started a strong rise again. Arweave is currently no less than 22.5% in the green.