Crypto Markets Lose $250 Billion Overnight as Bitcoin Slumped by $8K (Market Watch)

The primary cryptocurrency charted a fresh all-time high at almost $74,000 yesterday, but the bears stepped up and pushed it south to a weekly low.

The altcoins have also suffered badly over the past 24 hours, with double-digit price dumps from the likes of XRP, ADA, AVAX, DOGE, and SHIB.

Bitcoin’s Daily Decline

Bitcoin’s price trajectory had been nothing short of spectacular in the past several weeks. After breaking above $50,000, the asset has looked only north, which culminated last week in breaking the 2021 all-time high of $69,000.

However, BTC was just getting started and kept climbing after recovering from the almost inevitable correction. As a result, the cryptocurrency skyrocketed to over $70,000 at the end of last week and all the way up to $73,900 (on Bitstamp) yesterday morning, which became its current all-time high.

After such an impressive rally, warning signs started to appear that there might be an overdue correction . Such a retracement indeed started yesterday with a drop to $70,000 but worsened earlier today when BTC slumped further to a weekly low of $65,600.

As of now, the asset has recovered some ground and stands inches above $67,000. However, its market cap is down by more than $100 billion in a day to just over $1.3 trillion on CoinGecko. Its dominance over the alts is also slightly down to 49.5%.

Alts See Red

As it typically happens when BTC heads in one direction hard, so do most altcoins. Ethereum failed at overcoming $4,000, and the drop of 7.5% since then has pushed it to under $3,700. BNB charted a multi-year peak yesterday but is now down to $570 after a similar daily retracement.

More pain comes from the likes of Cardano, Avalanche, Dogecoin, Ripple, Polkadot, Polygon, Toncoin, and Shiba Inu. All these assets have declined by double-digits in the past day.

With most other mid- and lower-cap alts in a similar state, the total crypto market cap has lost over $250 billion in a day and is down to $2.650 trillion on CG.