Crypto market cap falls to $1 trillion after Bitcoin takes a hit
The 2022 bearish trend is still pushing many crypto prices below expected markups. The market also rallied a few times amid the raging crypto winter of the past few months. But the pullback has persisted and continues to rule the short-term rallies.
Aside from companies closing stores, downsizing, and declaring bankruptcy, investors have lost millions in 2022. Moreover, the continued downward trend in crypto prices has caused billions in losses to the overall crypto market value.
At the peak of the crypto winter, the total market cap fell below $1 trillion, causing massive panic in the crypto community. Fortunately, it rose to $1 trillion and later surpassed it. But now it seems that the trend has started to go down again.
Crypto Market Thoughts Following Bitcoin
The crypto market capitalization is pushing the lower limit towards a drop below $1 trillion. This is not surprising given that Bitcoin’s price is once again falling towards $21K. As of press time on August 21st, BTC is trading at $21,320, showing a 1.35% loss from the August 20th price.
This price level represents a 14% loss in Bitcoin price over the past week. As a result, the total market capitalization of crypto is falling towards a level it has already surpassed. Analysts wonder if the rate will stay at that level.
Apart from the price collapse of bitcoin these days, other indicators of its value seem positive. For example, Bitcoin market dominance has increased by 0.5%.
The market dominance metric is used to measure how Bitcoin and other altcoins are performing. Therefore, the slight increase in the BTC dominance level shows that bitcoin is doing better than others.
This shows that things are not smooth for the general crypto market. Of course, this new week could be favorable or unfavorable, given that Bitcoin lost 14% in the last week. But even at a loss, BTC’s price is better than many altcoins.
Altcoins register heavy losses
Ethereum and some of the altcoins lost some price values. ETH lost 3.90% in 24 hours. Altcoins like UNI, SOL, LINK, DOT, AVAX, etc., have lost almost 5% in 24 hours.
Among all losses, since August 20, Celsius Network’s CEL took the lead by falling 21%. Others such as ETC and STEPN’s GMT also lost at least 6%. Unfortunately, these losses negatively impact the total market cap as it pushes towards $1 trillion.
Featured image from Pixabay, Charts from TradingView.com
