Crypto market cap plummets to 5-month low as over $350 billion wiped in a day

Crypto market cap plummets to 5-month low as over $350 billion wiped in a day
9 months ago
3 mins read

Bitcoin (BTC) and other cryptocurrencies have lost hundreds of billions of dollars in value as a dramatic decline in the crypto market worsens.

On Saturday, January 22, the global crypto market cap stands at $1.62 trillion, following a  12.02% decrease over the last day. As a result, the crypto market cap saw $356 billion wiped from its value in just a single day as its price went from $1.98 trillion to $1.62 trillion.

Crypto market cap 1 day. Source: CoinMarketCap

The overall volume of the cryptocurrency market during the previous 24 hours has reached $131.90 billion, representing a 26.92% gain. 

DeFi accounts for $19.36 billion, or 14.68 percent, of the overall crypto market’s 24-hour volume, whereas the value of stable coins is now $107.34 billion, or 81.38% crypto market’s 24-hour volume. Notably, the last time the market cap was this low was on August 8, 2021.

Crypto to move into stocks?

In light of the fact that the crypto market currently looks bearish as it continues to shrink, some experts, including Andersen Capital Management’s chief information officer Peter Andersen considers that “crypto is headed for a major correction.”

Likewise, Gareth Soloway, the chief market strategist of InTheMoneyStocks.com, has said that the continuous Bitcoin volatility may cause the commodity to fall to below $20,000, but that the cryptocurrency’s long-term prospects remain bullish.

As a result, former hedge fund manager and host of Mad Money Jim Cramer considers that the money leaving the crypto market will head into stocks; he tweeted:

“I think there will be a wave of money coming from crypto into stocks.”

Bitcoin price analysis

In particular, the majority of the money has left Bitcoin in the market, with the flagship digital asset having now dropped 8.99% in the last day and 17.40% in value over the previous seven days. This comes on the heels of what had already been the worst start to a year in Bitcoin history. After reaching an all-time high of over $68,000 in November, it is now worth less than $36,000 today. 

Bitcoin price chart 7 days. Source: CoinMarketCap

Bitcoin’s price had already suffered a significant fall on Thursday night and into Friday when it dropped from roughly $43,000 to around $38,500. However, the decline extended even further early on Saturday morning, bringing the stock to a low of $35,140, although it is now trading at $35,567, according to CoinMarketCap statistics.

Any investors in Bitcoin who purchased cryptocurrency at the beginning of the year have seen their investment lose more than 23% of its value in only three weeks.

Other cryptocurrencies have seen much more significant declines; for instance, Ethereum is currently down by 26.7% in the last week; similarly, Binance Coin (BNB) and Cardano (ADA) are both down over the previous seven days by 28.8% for the former and 19.7% for the latter.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Jordan Major

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.