Until a few weeks back, the aggregate crypto market cap was comfortably hovering in the $2.4 to $2.6 trillion bracket. However, the past few days have been rough, with billions of dollars being eroded from the valuation of assets.
On Friday, it dropped to $1.94 trillion. As chalked out below, this is the lowest level recorded since early March this year.
Large-cap assets including Bitcoin and Ethereum lost crucial supports from the technical point of view. At press time, they were seen trading at $54.1k and $2.86k respectively.
Long traders were mercilessly rekt. Data from Coinglass pointed out that over the past 24 hours, more than $675 million worth of crypto positions were liquidated. Out of that, more than $577 million were longs.
Consequently, market participants have started panicking already. The fear and greed index’s reading dropped from 44 to 29 over the past day, bringing to light the proliferating fear amongst traders and investors.
On one hand, it can be said that market participants are worried at this stage, but on the other, their fearful state also presents a buying opportunity to long-term hodlers.
Amid the macro crypto bloodbath, Bitcoin’s dominance has noted a slight uptick to 55.18%. However, it continues to hover below its 2024 high of 56.31% which was scripted in April.
For context, BTC.D depicts the ratio of the coin’s market capitalization to the crypto market’s cumulative market capitalization. A rise registered usually indicates investors are locking their funds in Bitcoin during periods of volatility and market uncertainty. Contrarily, a drop connotes to a rise in altcoin interest.
Analysts like Benjamin Cowen expect Bitcoin to continue calling the shots and see this metric rising higher in the days to come.
