The digital currency markets have depreciated this week as Bitcoin has lost more than 8% of its value in the past seven days. The total market capitalization of all over 10,000 crypto assets also fell 3.4% on Monday to $ 1.25 trillion. The crypto markets follow the trend of the large price losses on Monday morning on the stock markets, as the shares have lost significantly in value.
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Bitcoin fell to a low of $ 30,400 on July 19 and lost about 8.64% in the last week as the leading crypto asset lost 3.3% in 24 hours. Bitcoin’s market valuation is $ 575 billion at the time of writing and $ 19 billion in BTC trading volume as of Monday.
The top five trading pairs with BTC include USDT, USD, BUSD, JPY, and EUR. The stablecoin tether (USDT) dominates over 56% of today’s BTC trading. Of the $ 1.25 trillion, BTC takes 46.4% of the total valuation, while Ethereum (ETH) dominates 17% of the total crypto-economy.
The second largest crypto asset in terms of market capitalization is Ethereum (ETH) and Ether has lost over 13% this week. ETH is also down over 6% in the past 24 hours and has a global trading volume of around $ 14 billion.
The biggest seven-day losers on Monday include Thorchain (RUNE), which is down over 40%, and Synthetix (SNX), which is down over 37%. The top three crypto assets on Monday include Nem (XEM), up 6.8% this week, unused Leo (LEO), up 1.9%, and Hedera Hashgraph (HBAR), up 1 , 4%.
In a note posted on Bitcoin.com News, Pankaj Balani, CEO of the Delta Exchange crypto trading platform, stated that the risk of falling below $ 30,000 is now higher.
“Bitcoin failed over $ 33,000 and is trading around $ 31,800 on the spot market,” said Balani. “Bitcoin is in a consolidation phase and is trying to settle in the range of 30,000 to 40,000 US dollars. Even so, BTC found it difficult to move upward and the upper end of that range has gradually approached. “The Delta Exchange manager added:
Bitcoin was above $ 36,000 last week and failed above $ 33,000 this week. We have also continuously tested the lower end of the above range, which shows price weakness and opens up the risk of a breakdown below $ 30,000. Overall, the risk of a downtrend below 30,000 for Bitcoin is now much higher than it was in May and June.
Equity correction could have a negative impact on crypto markets in the short term, long-term confidence remains high
Alex Kuptsikevich, Fxpro’s senior financial analyst, told Bitcoin.com News that an S&P 500 correction could negatively affect the entire crypto economy. At the time of writing, the Dow Jones Industrial Average was down 700 points while the Nasdaq, NYSE and technology stocks also fell significantly on Monday.
“The hash rate of the Bitcoin network has never recovered to its peak and is currently at the level it was in at the end of October 2019,” said Kuptsikevich. “This should soon be followed by an automatic decrease in complexity. It is accepted that the price of Bitcoin follows the hash rate / complexity of mining, so the investment outlook is deteriorating for the time being. ”Kuptsikevich’s analysis continued:
A correction in the S&P 500 could have a negative impact on the short-term dynamics of the crypto market. In this case, a correlation between the benchmark stock index and Bitcoin can develop its full potential, as there is a similar cautious mood in both markets.
Etoro senior analyst Simon Peters says the long-term outlook is still quite positive despite short-term corrections.
“The recent tough conditions for Bitcoin and Ether continued last week as both crypto assets continued to see significant sell-offs,” Peters told Bitcoin.com News on Monday. Bitcoin’s recent troubles worsened when the crypto asset collapsed later in the week and started trading over $ 34,000 before losing ground. Likewise, the ether has fallen sharply from its recent highs. ETH started the week above USD 2,000 but saw a quick sell-off to trade below USD 1,900 at times, ”added the Etoro analyst.
“With another week of weak performance,” added Peters, “speculation about the near-term direction of prices of key crypto assets is widespread, with mixed opinions about the price depending on which metrics / indicators analysts are looking at.” Bitcoin.com News concluded, “Long-term confidence remains high, however, with a recent survey of fintech experts showing that more than half believe that Bitcoin can become the global reserve currency by 2050.”
What do you think of the recent downturn in the crypto economy? Let us know what you think on this matter in the comments below.
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