Crypto market drops $ 250 billion in hours as Bitcoin and Ethereum are the biggest losers in the gigantic market’s recent sell-off ⋆ ZyCrypto
The central theses
- Bitcoin and Ethereum lead the sell-off in the crypto market with a drop in value of around 9% and 10% respectively.
- Despite ongoing volatility, market sentiment is still bullish.
- Market participants see the dip as a great buying opportunity for Bitcoin.
The cryptocurrency market saw another major sell-off today. At the top of the slump are the two largest cryptocurrencies in terms of market valuation, Bitcoin and Ethereum.
BTCUSD chart from TradingView
Bitcoin is down about 9.1% in the past 24 hours and was trading at around $ 59,900 at press time. The downward revision has caused the benchmark cryptocurrency to hit a two-week low of $ 59,268.
Ethereum, the second largest cryptocurrency, also fell to a 2-week low of about $ 4,168 today after falling about 10%. At press time, it is currently trading at around $ 4,200. The rest of the market is also in turmoil, just like that day, with other top ten cryptocurrencies falling between 7-15% as well. The market capitalization of the cryptocurrency has declined about 8% and has gobbled up over $ 250 billion from the market.
Crypto‘s high volatility
The last notable market sell-off occurred about 3 weeks ago when the market tanked on Bitcoin, which also led the pullback. Bitcoin’s value fell by about $ 5,000, from trading at about $ 64,000 to $ 59,000 in a matter of hours. Across the market, around $ 200 billion was also wiped compared to the market valuation seven days before the correction.
The current price action is a confirmation that the cryptocurrency market is still prone to volatility, even if price fluctuations are no longer as wild as they were in the past.
The coming months still harbor the risk of persistent price volatility in the crypto market. This is due to recent news from China, which revealed that the country is still stepping up its crackdown on the cryptocurrency market. China’s state planner, the National Development and Reform Commission (NDRC), said it would go after the mining operations that are still in operation in the country. China’s moves against the crypto industry have historically been bearish for the market.
Market sentiment is still bullish for Bitcoin
However, the current market sentiment remains very optimistic. For market watchers, including “Crypto_birb”, a technical crypto analyst and investor, the dip is a much better buying opportunity for him than it is for selling.
According to the stock-to-flow model, the price of Bitcoin is expected to reach a price of $ 98,000 by the November closing price. The valuation model’s creator, PlanB, has reiterated that the model is still in the game and he’s confident that Bitcoin will also mark $ 135,000 by December.