Crypto Market Cap Drops Below $1 Trillion As Bitcoin, Altcoins Deep In Red: This Week’s Recap

The past seven days turned into a bloodbath for the entire cryptocurrency market, which fell below $1 trillion in terms of total capitalization. This has happened for the first time after January 14.

The decline comes on the back of a lot of negative macroeconomic developments, so let’s unpack.

First things first, bitcoin price is trading around $20,000, although at the time of this writing it is slightly lower than that. Binance’s intraday low sits at $19,549 and BTC is down nearly 15% over the past seven days. However, most of the damage has happened during the last 24 hours.

The rest of the market is no different. Ethereum is also down 15%, BNB – 9.1%, Dogecoin – 20%, MATIC – 17.7%, SOL – 20.5%, and so on – you get the picture. The only notable exception is XRP. Interestingly, it is down only 2% and is the best performer in the top 10 so to speak.

The accident happened during the last 24 hours and not without good reason. First, Silicon Valley Bank — a major financial institution with a quarter trillion in deposits — raised its stock after attempting (and failing) to raise money through a share sale to patch the nearly $1.8 billion hole. Dropped by about 70%. Investors became worried about their funds, which had a negative impact on the entire sector.

At the same time, US President Joe Biden presented a new budget that gets rid of tax-loss harvesting for crypto investors and also proposes severe hikes on various taxes. While many believed the budget would not pass, tensions intensified.

The Attorney General of New York filed a lawsuit against KuCoin, alleging that ETH is a security. This is the first time an official has alleged that ETH is a security in court. This led to additional regulatory pressure, to which Gary Gensler – the SEC chairman – also added fuel via an op-ed where he stated that almost none of the crypto entrepreneurs followed the commission’s rules. fun times.

It is safe to say that better days are ahead of us, but it will be interesting to see how the market shapes up in the coming weeks. Is this $20K retest? Only time will tell.

market data

Market Cap: $965B | 24h Vol: $108B | BTC Dominance: 39.9%

B T c: $19,929(-15.1%) | ETH: $1,406 (-15%) | bnb: $273 (-9.1%)

You better not miss this week’s headlines

6 possible reasons why bitcoin fell below $20K in a day. Bitcoin slipped below $20K today, having fallen more than 15% in the past week. Here are six possible causes of the most recent market turmoil and whether there’s more pain ahead.

Huobi Token Crashes Up to 90% in Flash Minutes: Here’s Everything You Need to Know. HT, Huobi’s native cryptocurrency, plunged by more than 90% in almost an instant. Within minutes, the coin was trading at around $0.30 and almost immediately skyrocketed back to where it was before the flash crash. It’s still down more than 20%.

Here’s everything you need to know about the latest Grayscale-SEC developments. Grayscale CEO Michael Sonnenshein said earlier this week that he is very encouraged by the legal progress the company is making toward potentially converting GBTC into an ETF. Here’s everything you need to know about the latest developments on the court.

The NYAG alleges that Ethereum is a security in the lawsuit against KuCoin. New York Attorney General Letitia James has filed a lawsuit against cryptocurrency exchange KuCoin for selling both commodities and securities without the required registration. One of the securities that the NYAG has accused the exchange of selling is ether.

President Biden’s 2024 Tax Plan to Target Crypto Washes Trading and Capital Gains. President Biden released his official 2024 budget plan on Thursday. Cryptocurrency transactions have been caught in the crossfire, while the office also proposes substantially increasing existing taxes.

Arthur Hayes proposed the bitcoin-backed stablecoin Nakadollar. BitMEX co-founder and former CEO – Arthur Hayes – proposes the creation of the Nakadollar. It is a stablecoin that is backed by bitcoin – created without the services of traditional banking systems and, therefore, free from fiat regulations.

chart

This week we have chart analysis for Ethereum, Ripple, Cardano, Dogecoin and Polygon – click here for the full price analysis.