Market cap suffers a $570B loss

Sun 05 Dec 2021 ▪ 12h22 ▪ 3 min read — by Katie Donaldson

The crypto market has endured a harsh Saturday – the latest crypto crash may be among the most devastating to date as we saw the overall market cap go down by a whopping $570 billion (~£430 billion) in less than 24 hours.

Crypto winter coming

The crypto market was worth $3.7 trillion (~£2.8 trillion) on Friday, 3rd December. It is worth just $3.1 trillion (~£2.34 trillion) at the moment of writing.

Bitcoin (BTC), which was testing $57,000 last Thursday, has shown traders a low of $45,000. However, it did recover a little bit. The cryptocurrency is currently changing hands at around $49,300. This represents a 14% drop.

Ethereum (ETH) wasn’t too fazed by the crash – it is trying to reclaim the $4,300 level at the moment. Binance’s BNB, Solana (SOL), Cardano (ADA) and Ripple’s XRP are down around 10%.

So what’s the reason behind such a devastating crash? Some analysts are saying that Federal Reserve’s potential tapering measures could soon burst the crypto bubble. According to Louis Navellier, the chairman and founder of Navellier & Associates, Bitcoin is facing one of the biggest price crashes in history, an 85% price drop that would send the BTC price under $10,000. “The more the Fed tapers, the more volatility we should see in both stocks and bonds — and yes, bitcoin, too,” he added.

“I would take a decline below $46,000 (the 200-day moving average) to be a yellow flag and a decline below the spring low of $28,500 to be a completed massive double top, which points to a decline to below $10,000, which incidentally would match many of the multiple 80+ per cent declines in its storied history,” he wrote.

The new Covid-19 variant outbreak is also one of the determining factors for the drop, as well as a simple fact that holidays are coming soon. In December investors are often looking to lock in their profits, taking money off the table.

However, many remain optimistic. For example, El Salvador’s president Nayib Bukele has posted a tweet where he announced that the country had acquired another 150 BTC at an average price of $48,500.

The recent news has sent the crypto market into a free fall. The BTC price is the lowest it has been since September.

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Katie Donaldson

I went full time crypto back in June 2018, and have never looked back. I want to help persuade as many people as possible to come and build the decentralised future! Let’s go!

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

Prices & Indices

BITCOIN (BTCUSD) $30,377.38 0.37%
ETHEREUM (ETHUSD) Ξ $2,059.22 0.91%
DEFI (DEFIPERP) $3,898.90 2.87%
MARKETS (ACWI) $87.95 0.29%
GOLD (XAUUSD) $1,859.42 0.72%
TECH (NDX) $11,835.62 -0.29%
CURRENCIES (EURUSD) $1.06 0.7%
CURRENCIES (EURGBP) £0.846340 0.16%
CRUDEOIL (USOIL) $111.11 0.53%
IMM. US (REIT) $2,463.96 0.79%
The percentage expresses the change over the past 24 hours BUY CRYPTOS WITHOUT RISK
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