Crypto Market Records Biggest Losses in Almost a Year, Down $170 Billion
What goes up, must come down. After a months-long parabolic rally that catapulted the cryptocurrency market past the $1 trillion valuation point, things seem to be taking a turn. Over the past 24-hours, the crypto market has suffered over $170 billion in losses, falling to $946 billion and losing its trillion-dollar crown.
Crypto’s leading asset, Bitcoin (BTC), recently turned 12 years old and celebrating by adding thousands of dollars to its market cap. However, the epic rally that started when Bitcoin secured a new all-time high on December 16th, now seems to have topped out at around $42,000. Following a weekend of shaking trading in the $40,000 range, Bitcoin suddenly plunged to a low near $32,000, losing 20% of its value overnight.
Long time traders and crypto analysts remain confident though, with many believing that this small correction will soon recover and Bitcoin will continue its journey to $100,000. Popular crypto advocate Lark Davis told his 94,200 Twitter followers that “while this dip could get worse, in all likelihood, Bitcoin will hit $50,000 in the coming weeks.”
While this dip could get worse, in all likelihood #bitcoin will hit $50,000 in the coming weeks.
— Lark Davis (@TheCryptoLark) January 11, 2021
The sentiments were reiterated on Twitter by another well-respected crypto trader @AngeloBTC, who made the simple statement: “NOT WORRIED ONE BIT”. Not all investors are as confident though, with Scott Minerd, chief investment officer with Guggenheim Investments, stating:
“Bitcoin’s parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.”
Bitcoin's parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.
— Scott Minerd (@ScottMinerd) January 11, 2021
Ethereum and Altcoins
Ethereum (ETH) suffered a particularly unfortunate loss as a result of the crash as it was within inches of securing a new all-time high above $1,440. However, after three attempts to break above $1,330, ETH succumbed to market pressure, crashing back down to nearly $1,000.
Some smaller cap coins were hit worse than others, while some barely felt the crash. Litecoin (LTC) and Stellar (XLM) both suffered high losses or 23%, while Binance Coin (BNB) only fell 12% and Monero (XMR) only 7%. Overall, the market has already begun to make an impressive recovery, with Bitcoin up 3% in the past hour, Ethereum up 2%, and Litecoin up 4%.