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Cryptocurrency market is in crisis and its capitalization falls below $2 trillion

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bitcoin crisis


The cryptocurrency market fell another 3.5% today, dropping below $2 trillion for the first time since September 2021.

Bitcoin is down 3%, falling below its crucial support of $42,500. As a result, it is expected that BTC could reach its next support at $40,000. If BTC plummets below this level, we are headed for $37,500.

On the other hand, the bitcoin fear index has reached its lowest level since July 2021. This suggests extreme fear in the market and could mean this could be an opportunity to buy the dip. Many analysts in the cryptocurrency space have claimed that the current market sell-off is similar to what was seen in the summer of September 2021. However, to validate this claim, BTC needs to rebound from current levels and capture the 45K-50K range again.

On the other hand, strong protests in Kazakhstan have led to Internet outages across the country. Knowing that Kazakhstan contributes 15% of the total hash, what will happen if miners in this region start selling their BTC once the Internet is restored? Bitcoin critics, such as Peter Schiff, already expect the price of BTC to fall to $15,000.

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The collapse of the altcoins market is worse than that of bitcoin.

The correction in the altcoins space appears to be much more severe than what we are currently seeing in bitcoin. The world’s second largest cryptocurrency, Ethereum (ETH), has lost another 6% and its price has plummeted below $3,250.

Other altcoins are experiencing even deeper corrections. The price of Solana (SOL) fell another 8% to below $140. This represents a correction of almost 40% from its record levels.

On the other hand, LUNA, Terra’s indigenous cryptocurrency, slips to $70. This is also a staggering 30% correction from its recent record levels of $100.

The recent correction in the cryptocurrency market follows Wall Street’s correction after the Fed’s commentary. Will this be the last dip before the market resumes its uptrend? Let us know what you think.

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