Crypto market cap slips below $1.4 trillion amid a fresh bearish trend
- After rising to $2.6 trillion, the crypto market is currently at $1.33 as bears remain dominant.
- China’s recent restrictions on crypto are the main reason behind the current bear market.
- Whale accounts are still accumulating BTC despite the coin’s poor performance.
The crypto market has undergone a massive loss over the past few weeks with cryptocurrency prices plunging on the slightest negative remark. As a result, the entire market is currently bleeding with today’s losses, pushing the crypto market cap below $1.40 trillion (£1.01 trillion). This drop means that the crypto sector has approximately half of its value in a matter of weeks.
According to data from CoinMarketCap, the amount of money locked in the crypto market peaked at $2.60 trillion (£1.88 trillion) on May 12. However, the market did not come close to holding this value, seeing as it shed approximately $1.35 trillion in the next 12 days to hit $1.25 trillion. While the market tried to recover these losses over the past four weeks, it only went so far before plunging back to $1.33 trillion at the time of writing.
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Over the past 24 hours alone, the entire crypto market has lost 5.63% of its value as most cryptocurrencies continue holding red candles. For instance, Bitcoin (BTC/USD), the leading crypto by capitalization, is currently trading at $32,453.79 after losing 3.55% over the last 24 hours. This figure denotes a 49.83% drop from the coin’s all-time high of $64,863.10. At the moment, the amount of money locked in BTC is $605 billion.
Whales continue amassing crypto despite the sharp drop
Multiple factors fuel the poor performance of the crypto market. The plunge started when China reiterated that crypto trading in the country is still prohibited and banned financial institutions from participating in the crypto sector. Apart from this, the country is moving to restrict BTC mining, with provinces such as Sichuan and Xianjing ordering energy companies to stop supplying BTC mining farms with power. As a result, BTC’s hash rate dropped substantially, forcing the coin’s price to slip further.
On top of this, Elon Musk, Tesla’s CEO, played a big role in triggering a bear market after he announced that the company had suspended BTC payments until miners start using more sustainable energy sources.
While the crypto market is performing deplorably at the moment, this has not prevented whales from accumulating digital assets. According to data from Santiment, a crypto analytics firm, there is an accumulation pattern amongst whale holders (wallets holding at least 1,000 BTC). The company also pointed out that mid-tier BTC adopters (those that hold between 10 and 1,000 BTC) are unfazed by the recent crash in the crypto market.