As Digital Asset Markets Recover Some Losses, Crypto Economy Shaves $100 Billion

Is Bitcoin Losing? 

As more than $100 billion was shaved off the entire crypto market valuation, digital currency markets have dropped in value during the last two days. A number of other crypto-assets saw significant losses as well, as bitcoin slid to the lowest point of the year at $28,800 per unit on Thursday afternoon. The crypto economy has regained some of the losses suffered during the last few days, currently, as digital currency trading sessions head into the weekend. 

Crypto Markets Attempt to Heal

The leading cryptocurrency in terms of market valuation has slid considerably in value during the last 48 hours. On Thursday afternoon the price dropped to $28,800 per unit and for instance, two days ago the price of bitcoin was exchanging hands for $35,900 per coin. It comes to be a total loss of -19.77% as BTC markets have rebounded since then and managed to climb right back over the $30k handle. 

Bitcoin is swapping at prices between $32,200 to $32,800 per coin and has touched over a $600 billion market valuation at the time of publication. 

On Thursday the price of bitcoin touched a new 2021 bottom touching $28,800 per unit. Having recovered some of the losses were since then BTC and a slew of other digital assets. During Friday’s crypto trading sessions currently, BTC is swapping for $32,500 per unit. 

With tether (USDT) capturing 52% of all bitcoin trades today, on Friday there’s over $28 billion in global BTC trade volume. It is still up 35% for the last 30 days as BTC shed over 13% over the course of the week.

BTC has gained 140% and 275% against the USD for 12 months over the 90-day span. As each ether is trading for $1240 per unit following BTC’s lead is Ethereum. During Friday morning’s trading sessions, ETH’s market cap is currently hovering at around $140 billion. 

Which is swapping for $17.36 per DOT, behind tether’s market valuation is Polkadot. XRP is currently trading for $0.27 per token and holds a $12 billion market capitalisation on January 22. Cardano (ADA $0.34), litecoin (LTC $140.81), chainlink (LINK $21.37), bitcoin cash (BCH $448.74), and Binance coin comes to be following XRP.

Being down 12% during the last seven days, bitcoin cash has a market valuation of around $8.1 billion. BCH is up 56% and 56% for the 90-day span as well during the course of the month. Bitcoin cash is up 32% against the US dollar over the course of the last 12 months. 

Institutional Appetite for Bitcoin

Etoro crypto analyst Simon Peters spoke about bitcoin’s recent price movements and volatility in a note to investors. As the cat is out of the bag with bitcoin, the analyst does not believe it would last for long as Peters said that lower prices could be on the cards. 

Peters then wrote, one which happens in all assets once the market has perceived them to be a little overbought, this price movement is a perfectly natural correction. The demand for bitcoin is not, although the price is dropping sitting at just over $31,000 at the time of writing. 

Finally adding to it the Etoro crypto analyst said:

Blackrock the world’s largest asset manager announced two of its funds will trade in bitcoin derivatives in the future as appetite among institutional investors is still growing with the likes of investment trust Grayscale thereby coming to buy $600m of that crypto asset in just a single day this current week. 

Onchain Analyst Says Bitcoin Miners May Have Dumped

The recent sell-off may have been sparked by some mining pools selling as detailed on Friday by the CEO of Cryptoquant, Ki-Young Ju. The Cryptoquant executive tweeted, having started from BTC miners in F2pool is this dump. 

Which showed the Miner’s Position Index and miner to exchange inflows, the onchain researcher also shared charts of the action. Ki-Young Ju further added that he got these bearish alerts yesterday. 78 miners deposited BTC in a single block of 10 min as Miners’ Position Index went above 2.5 and 569 people deposited BTC in a single block of 10 min. 

Growing FUD

In the land of crypto assets and the growing economy, no one truly knows what will happen from here. While crypto-assets like bitcoin have been bullish, during the last few weeks lots of fear, uncertainty and doubt have been circulating wildly. 

Those uncertainty surrounding the Biden administration, negative comments from Janet Yellen as well as Christine Lagarde, those Mt. Gox discussions, as also environmental debates over proof-of-work, tether (USDT) controversy, and the recent Ledger customer data hack, there come to be considerable regulatory scares. Cryptocurrency proponents still seem very optimistic about the future of crypto assets in 2021 despite all the FUD. 

So where are we standing now in the crypto world?