The entire crypto market is still bleeding as major tokens in the sector have been seeing heavy losses since yesterday. As it stands now, Bitcoin and other top tokens have now recorded double-digit losses except Tether, which is still showing small gains.
With the market seeing red, some major traders in the sector triggered a massive sell-off in a day that would be recognized as one of the biggest daily losses. Sunday saw the entire market cap in the crypto sector touch the $1.76 trillion region after a recent bull run which saw Bitcoin and some other top coins touch the top spot.
Bitcoin market cap declines
As it stands now, the entire crypto market’s market cap has dwindled to $1.46 billion as the sell-off continues to dominate the entire market. With the fall in the price of the assets, investors have been making daily transaction volume skyrocket as most of them are trying to take their losses or protect their gains as the case may be.
Presently, trading volume has jumped up 60% in the market as recent data has shown that close to $250 billion has been exchanged in the last 24 hours. Taking the lead in the falls is Bitcoin, which has recorded a massive fall in the price to move from the previous highs of $58,000 that it traded in the late hours on Sunday to rest at $47,000. Taking to records, this will be the largest price loss that Bitcoin has ever recorded in that short space of time.
The loss also saw Bitcoin shed a little value from its market cap. Bitcoin previously recorded a market cap of above $1 trillion, and the losses have now pushed the market cap back into the $900 billion range. Enthusiasts and experts have moved to allay fears and have mentioned that this is a healthy run in the coin’s cyclical movement.
Analysts see a correlation between Bitcoin and stocks
Other analysts also chipped in their bit with Raoul Pal, noting that the much-anticipated sell-off has eventually happened in the market. Even though most people don’t know why the sell-off happened, analysts have mentioned that most of the reasons why the sell-off happens are events outside the crypto sector.
They mentioned that these events had triggered the most sell-off in the past, and this one is not an exception. Some think that stocks and bonds are having a rub off on crypto as they all comprise the digital world figure.
A major example was the sell-off in the crypto sector in March last year; the same sell-off saw stocks and bonds decline as the coronavirus pandemic began around that period. After the period, Bitcoin bounced back, and so did stocks and bonds, and soon, their correlation began to show. Backing that up, one would note what happened on Wall Street yesterday after the assets tanked.