A market correction resulted in a bitcoin price decline to about $51K, but the altcoins have been hit the most. Most large-cap altcoins such as UNISWAP and Polkadot experienced a double-figures price decrease, while Ethereum declined to much lower than $1.6K. The BTC market cap was also not left out in the correction.
The Alts Are Red; Ethereum Is Less Than $1.6K
Yesterday’s altcoin market started on a healthy note with a few gains after some days of sideways trading. ETH led other altcoins to reach a peak daily price of $1.7K. But in less than a day, the market conditions changed drastically.
Some hours ago, there was a sudden price decline that caused Ethereum to trade at its intraday low of $1.55K. While it has made a few rallies, it remains more than 6% down and currently trades beneath $1.6K. The remaining altcoins also experienced dips. Cardano and Binance now trade at about $1 and $250 respectively after experiencing a 5% and 2.5% price decline.
Polkadot experienced the highest slump at 13% and now trades below $31. Ripple is now less than $0.5 after a 10% decline. UNI and LTE currently trade at $28 and $176 after a decline of about 12% and 9% respectively. Theta which had previously risen by almost 61% during the past week was down by 18% to now trade at about $12. Despite this decline, theta maintains its position to be among the top nine altcoins with the largest market cap.
Crypto coins price drop by percentages. Source: Quantify Crypto
Other notable losses were 0x (-12%), Ontology (-14%), Omg Network (-12%), Sushiswap (-13%), Ren (-12.5%), Flow (-12.5%), Fantom (-12.5%), IOTA (-15.5%) and Theta Fuel (-23.5%). With about $151 billion loss within one day, the cumulative market capitalization is now less than $1.62 trillion.
More Than $6K Loss in Less Than 24 Hours, Is There Cause For Concern About Bitcoin Price?
When Elon Musk tweeted that Tesla now accepts bitcoin for the purchases of the electric car and won’t convert the coins to fiat currencies, it seemed as if the king coin is heading for a fresh bullish run. The king coin surged by a couple of thousand dollars to exceed $58,000 within a few hours after that tweet.
However, there was a price decline as BTC lost over $6K to trade at its intraday low of $51.5K as of this writing.
While it may have rallied to about $53K, it still represents a 4% decrease within a day. What’s more worrisome is that bitcoin’s market capitalization decline beneath the desired $1 trillion and has failed to rise above it since then. Bitcoin market cap has surpassed a trillion dollars twice this year (February 19 and March 9). While it didn’t stay there for long the first time, it has remained there since the second time before it went under it after today’s decline.
Bybt analytics reports that this market situation has resulted in more than $2 billion worth of liquidations throughout the market since yesterday. In the last 12 hours alone, over $1.6 billion worth of liquidations has happened. That period represents the estimated time the market started correcting itself.
BTC/USD price chart. Source: TradingView