Crypto corrections are a part of the cryptocurrency world and they always send prices sliding. On Thursday, we saw two major digital currencies decreasing from their all-time highs. Bitcoin and Ethereum both dipped below $47,000 and $3,700 respectively for the first time since December 21 – a drop from peak to trough which has left many people wondering if we’ll ever see these currencies reach similar heights again?
Not to raise your hopes high, but it appears that these trends may be coming to an end soon because many investors believe there will finally be some positive news this week which might lead them back into investing mode. These new lows sent ripples through markets worldwide with impacts felt not just here in America where stocks fell yesterday even Wall Street is feeling pain.
The recent market volatility has caused a significant decrease in the overall crypto capitalization, with losses reaching $100 billion over 24 hours. The crypto currency market continues its decline, with the value of digital currencies now at an all-time low. In November 2021 it touched $3 trillion dollars for one day but has since gone down significantly to stay below 2x what they were worth just last year!
As bitcoin and Ethereum’s market caps continue to plunge, it is clear that their days as kingpins of the cryptocurrency world may be coming to an end.
BTC’s market dominance reached 40.4%. It seems that Ethereum, on the other hand, is not showing any signs of recovery yet with a drop in its value over the past two days alone seeing more than 2%.
Some say that the new crypto-currency is a bubble whereas others see it as an opportunity to get in early and are willing to invest their money. The price of Ethereum has seen significant growth within this last year with its current 20% market share, so more people than ever before have heard about what’s happening inside these digital markets!
The crypto market is not going to die just yet! Long-term investors are still optimistic about the future of cryptocurrency and they say that fundamental indicators like Bitcoin’s (BTC) value or Ethereum’s price shouldn’t change much because there was little trading activity during last holiday season. If you look at low volumes compared with other times, then it seems as if people might be thinking differently abroad – which would mean one thing for traders – The turnaround may come soon enough.
Bearish Sentiment?
The crypto market witnessed a bearish sentiment since the beginning of December 2021. With an overall drop in value for digital currencies worth around $800 billion, it is one month that will remain as among some worst performing months within this industry’s history.
Santiment, a crypto analytics platform, noted, “It means there are people that are immediately ‘panicking’ about the crash. Maybe they are fixing profits for the year for tax optimization purposes. People [are] selling now because they believe it can dump lower. It’s a sign of bearishness. There are enough people that believe BTC will not go higher the whole [of] next year. They sell now because they don’t feel confident holding BTC.”
The company adds, “Every week since November we are seeing a lower high in terms of daily circulation. The amount of Bitcoin being used over the network is clearly declining. So, things like NVT ratio are going to start to look red.”
