The crypto market is facing another wave of sell-off pressure as the prices of Bitcoin and most altcoins have dropped significantly in the past 24 hours. Bitcoin, the world’s largest cryptocurrency by market capitalization, has fallen below $25,000 for the first time since December 2020, losing over 5% of its value. Ethereum, the second-largest crypto, has also dipped below $1,650, shedding more than 6% of its value.
The sell-off has affected the entire crypto market, with the total market capitalization dropping by more than $100 billion in a day. According to CoinMarketCap, the global crypto market cap is currently $1.08 trillion, down from $1.18 trillion yesterday. The market dominance of Bitcoin has also declined to 40.8%, while Ethereum’s share has increased to 18.9%.
Among the top 10 cryptocurrencies by market cap, only Solana (SOL) and Binance Coin (BNB) have managed to stay in the green, gaining 2.8% and 1.1% respectively. SOL, which is a fast-growing blockchain platform for decentralized applications, has recently reached a new all-time high of $237.18, boosted by strong demand and adoption. BNB, which is the native token of the leading crypto exchange Binance, has also benefited from its ecosystem expansion and innovation.
However, the rest of the top 10 cryptos have suffered heavy losses, ranging from 4% to 8%. Cardano (ADA), Dogecoin (DOGE), XRP, Polkadot (DOT), Terra (LUNA), and Avalanche (AVAX) are among the worst performers, losing more than 7% each. Some of the reasons behind the market slump include regulatory uncertainty, tax concerns, environmental issues, and profit-taking.
Despite the bearish sentiment, some analysts and experts remain optimistic about the long-term prospects of the crypto industry. They believe that the current correction is a healthy and necessary one that will create more opportunities for investors and innovators. They also point out that the fundamentals of crypto are still strong, with growing adoption, innovation, and institutional interest.
