Over $150B wiped out from crypto markets, but no big deal, analysts say

Bitcoin coins and trading chart with price performance.
1 year ago
3 mins read

Cryptocurrency markets are correcting heavily as the week draws to a close following Bitcoin’s rapid decline below $30,000 a few hours ago. However, the $30k zone must hold, and at the time of writing, Bitcoin had reclaimed it to trade at $31,300 levels.

Over $150 billion has been wiped out from digital asset investments over the past 24 hours or so. Total market capitalization has declined from just over a trillion dollars down to around $840 billion a few hours ago, according to Tradingview.com.

Bitcoin leads the slump

Bitcoin lost around 15% in its largest daily drop for well over a year. From an intraday high of a little over $35,000, the asset plunged over $6,000 to settle just below $29,000 marking a full correction of 30% from its all-time high on January 8.

Chart – tradingview.com

Previous bounces down have led to lower highs on recovery, indicating that the correction is not over yet. A break below current levels could see the asset retreat as much as 40%, which puts it back at the $25k level.

Long term investors and Bitcoin whales such as RT’s Max Keiser were unperturbed and saw the move as a buying opportunity;

“I’ve been through three 90% corrections in Bitcoin since 2011. This 30% drop doesn’t phase me one bit. In fact, it’s fun.”

China’s industry insider, Dovey Wan, suggested that it could be the Chinese New Year effect which traditionally causes a dump at this time of year as money is needed for the holiday period. She suggested that it could fall as low as $23k in this dip;

‘PlanB,’ the brainchild behind the famous stock-to-flow model, was also unconcernedly pointing out that the long-term price model is still on track, even with this current correction.

“$31.5K bitcoin feels low compared to $40K … but did you really expect BTC price to front-run S2F model already? S2F model is right on track, like clockwork. Patience!”

Elsewhere on crypto markets

Bitcoin is known as the pied piper of crypto for a reason as the rest of the market blindly follows its moves. All of the altcoins are a sea of red at the moment, with many of them also dumping double digits on the day as cryptocurrency trading takes a massive hit.

Ethereum has lost 10% in a fallback to $1,150, but it is still hovering around its highest prices. Polkadot, which recently flipped XRP in market capitalization, has largely escaped the pain with a minor retreat keeping it above $16, while XRP has dumped 9%, declining to $0.26.

Other altcoins in massive pain today include Cardano, Bitcoin Cash, and Monero.

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Martin Young

Martin has been writing on cyber security and infotech for two decades. He has previous trading experience and has been covering the blockchain and crypto industry since 2017. He has previously contributed to Asia Times, Cointelegraph, NewsBTC, Bitcoinist, Cryptoinsider, Beincrypto, and Micky.