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The crypto market capitalization has just dived below the $1 trillion mark. We’re not surprised, given the recent negative turn of events. Bitcoin itself has plummeted below the $20k mark. Now BTC price is at $20,143. The case is also not better for altcoins.
Ethereum, the second colossal crypto, has also recorded some losses in price. As of August 29, ETH’s price stands at $1,537 after gaining a 7% growth.
All these price losses have caused the crypto market cap to fall below the $1 trillion mark. As of August 29, the total figure stands at $950 billion after losing $50 billion in 24 hours.
Is There Any Hope For Bitcoin?
BTC chart shows a bit recovery from its fall. But there’s still doubt whether it can sustain the gradual climb back to $20K.
Bitcoin dipped to $19,500 previously and later recovered to $19900 but still fell again to $19,847. So, it’s hard to think that the upward momentum will continue, given the fluctuations.
But other metrics to gauge Bitcoin performance are positive. For instance, Bitcoin dominance increased in 24 hours, indicating that it outperformed altcoins even as it is falling.
BTC price moves above the $20k zone on the chart. Source: BTCUSDT Tradingview.com
What Is Happening With Altcoins?
One notable thing about the crypto market is that the Bitcoin movement affects altcoins. When BTC goes bullish, almost every altcoin does the same, and vice versa. Now that Bitcoin has lost some percentage of its price, other cryptos have joined the same train.
The cumulative effect of these price losses led to a dip in the overall market cap. The chart for altcoin has shown slight decreases.
The chart above from Quantify Crypto shows that these altcoins are losing instead of gaining. For instance, ADA lost 3.7% and then gained 4%, while Ethereum has now gained 3%. Other altcoins, such as BNB, are down by 1%, while XRP and AVAX also fell on the chart. But some cryptocurrencies are seemingly doing well, although not much.
Is The Bearish Trend Continuing?
The crypto market has entered into the “Extreme Fear” state. The August 26 Federal Reserve annual meeting set things off negatively. Fed Chair Jerome Powel decided to take the hawkish approach to fight inflation instead of being dovish.
Immediately after the meeting, the crypto market started a downward movement. Also, stocks lost some percentages too after the speech. So if the Feds take the Volcker Esque approach as suggested by Neel Kashkari, the bearish trend might be extended beyond imagination.
Featured image from Pixabay, charts from TradingView.com