Overall crypto market continues to slide downward with the top assets struggling to gain. Multiple factors seem to keep the plunging situation going throughout the entire week.
Bitcoin already fell to its lowest price since October 13 on Tuesday evening. Its $55,460.96 value goes nearly 20% down from the record-high $69,000 peak in early November. Meantime, well-recognized cryptos like Ethereum, Solana & Binance also dipped by 0.5% to 3.0%.
However, so-called ‘meme coins’ – Dogecoin & Shiba Inu managed to achieve slight gains. Others like XRP, Litecoin, Uniswap, Polkadot, Stellar, Cardano traded at mixed intervals.
Digital currency analysts at Forbes managed to figure out several factors behind the crash. And the issue ranges from the rise in selling pressure, speculation & wrapping the year-profit taking.
Another potential factor concerns movement of Bitcoin from extremely old wallets. The unexpected trading has led to rumors as well as apprehension from investors. A Japan-based BTC company named Mt Gox may also have something to do with the situation.
The crypto exchange company stopped trading back in 2014 with millions of BTC. Meantime, a specific bankruptcy protection scheme (Civil Rehabilitation Plan) provided BTC as compensation.
In this case, now-defunct exchange creditors will soon receive more than 140,000 Bitcoins. And the apprehension still runs high to force the creditors to sell the current holdings.
Surprisingly, the crash hasn’t deterred the community with strong inflows & constant volume. Of course, the total market cap experienced a dip, following the sliding trend.
CoinMarketCap checks $2.55 Trillion global capitalizations after going down by 1.20% on Tuesday. But the volume increased significantly – trading at $127.29 billion, gaining 11.25% increments.
Likewise, comparatively new or less-known cryptos happen to gain/loss the most percentage. Solar Energy, ShibaFloki Trillionaire & GenShinShibInu gained 8863.58%, 1243.03% & 701.67% respectively. And Shih Tzu, Ethereum Meta & FastSwap lost 99.89%, 99.41% & 98.89% respectively.
It’s no surprise that BTC’s downfall keeps dragging other cryptos with it.
Anyone to invest in the cryptos should remain aware of bogus rumors, crypto analysts warned. It’s yet to know any supportive news to set the gain positive for Bitcoin again.