Crypto Markets Shed $50B Daily as BTC Dipped Below $30K (Market Watch)

Bitcoin posted a new 13-month high yesterday at $31,500, but the subsequent rejection drove it south hard, and the asset slipped below $30,000 on a few occasions.

The altcoins have also turned red, with the most losses coming from the likes of Litecoin, Bitcoin Cash, Lido DAO, and others.

BTC to Lose $30K?

After the enhanced volatility last Friday, which drove bitcoin from over $31,000 to a 10-day low of $29,500, the cryptocurrency had calmed and spent the next few days at around $30,500 without any major moves.

This started to change mid-week when the asset pumped above $31,000 but was stopped once again. After sliding back down to $30,000, it went on the offensive once more yesterday and jumped to a new 13-month peak at $31,500 (on Bitstamp).

As the bulls were preparing for another leg-up, the bears came out of the woods and brought bitcoin south hard. In a matter of about an hour, the cryptocurrency had lost another $1,500 and dipped to $29,700 earlier today amid signs suggesting the recent rally is about to cool off.

Naturally, this massive volatility harmed over-leveraged traders, as the total liquidations shot up to over $140 million at one point.

As of now, BTC stands just inches above $30,000, but its market cap is down by $20 billion to under $585 billion.

BTCUSD. Source: TradingView## Alts Turn Red

As it typically happens when BTC faces extreme volatility, so do the altcoins, and most have turned red today. Ethereum and Binance Coin are down by similar percentages, between 4-5%. As a result, ETH had dumped to $1,860, while BNB is below $235.

Ripple, Cardano, Dogecoin, Solana, Polkadot, Polygon, and Avalanche are also well in the red on a daily scale. Bitcoin Cash has declined by over 5% in a day to $280. Litecoin, among the top performers until a few weeks back, has dumped by 9% and sits well below $100.

More losses come from the likes of LEO, LINK, ICP, SHIB, APT, ETC, XLM, VET, AAVE, and others. LDO has dropped by 10.5% in a day and struggles at $1.9.

In total, the crypto market cap has seen $50 billion gone since yesterday’s peak, and the metric is down to $1.170 trillion on CMC.

Cryptocurrency Market Overview. Source: Quantify Crypto