Bitcoin’s market cap falls below $400 billion, and the entire cryptocurrency market suffers a similar decline.
Bitcoin’s market cap breaks another level
From late 2020 to the present, Bitcoin’s market capitalization has suffered a major collapse, and BTC’s own behavior is the driver of this loss of investor interest.
Compared to Bitcoin’s ATH in 2021, when the price reached $69,000, to date, digital gold has lost 65% of its value, hovering between $20,000 and $21,000. That’s a significant drop that has led it to lose 30% of its value in the last month alone.
Due to multiple factors, this effect has spread almost as if it were a contagion to the rest of the digital currencies so much that it has created striking similarities that make BTC’s performance look almost like a cakewalk.
The performance over the past year is very disappointing among the top 10 cryptocurrencies by capitalization.
Accomplices to this are a bear market, a tendency to perform at least in recent times related to the performance of the U.S. stock market, aggressive policies of central banks, and so on. The top 10 cryptocurrencies have swung losses ranging from 60% to 90%, as we can see with Dogecoin (DOGE).
This data is very relevant and easily explains the huge market cap contraction in the sector, especially considering the power ratios in the field.
If we take the top two digital currencies by capitalization, namely Bitcoin and Ethereum (ETH), they gather 55% of the entire sector with one-year performances of -65% and -75%, respectively. It goes without saying, then, that many investors (at least for the time being) have preferred to shift resources elsewhere or rather stay at the window despite 8.5% inflation.
Bear market hits all cryptocurrencies
From the $4850 ATH of November 2021, today, ETH changes hands for just over $1100, while BTC, from $69,000, stands at $20,204.80 at the time of this writing. On the other hand, Dogecoin is still declining and stands at $0.064.
Watcher.Guru, in a July 10 tweet, summarized the dramatic moment well thus:
“Bitcoin’s total market cap has dropped below $400 billion.”
On the stablecoin side, the situation is no better, tracing the capitalization losses of other currencies.
The top 10% of the asset comprises the sum of DOGE, SOL, ADA, XRP, and BNB, which have lost more than 80% of their value from their 2021 highs in just under a year.
Cardano, for example, has lost 85% of its value in the past 10 months, and the same has happened to Solana, which has left 6% on the field this month.
The downward trend, however, seems to have been discounted almost entirely by the market, which expected this situation.
The feeling is a “cleansing” of assets in which only whales and, in general, holders that yield in currency fundamentals remain.
The converse is all the more true for Bitcoin, which, helped by a bear market such as we have not seen in a long time, has long-term investors in its belly who believe in the asset and do not live by trading in the short term.