Nearly all of the major cryptocurrencies are currently in the red following a huge series of dumping by bears. As of this morning, nearly $200 billion have been collectively wiped clean over the course of the previous 24 hours alone. This had resulted in the overall market capitalization decreasing by 11% from about $1.74 trillion to a new low of just over $1.5 trillion.
This huge selloff has caused significant losses for the cryptocurrency industry and the market as the aforementioned $200 billion has now been converted into fiat currency once again. This is the lowest that the markets have ever dipped to since the 30th of May 2021, and it does not look like things are going to improve immediately either.
The Crypto market continues to struggle
Just as it looked like things were starting to improve, the current situation caused significant losses for many. Previously, the lowest overall market capitalization had been recorded on the 24th of May when we had reached $1.46 trillion. However, there is a silver lining, and that is the fact that the markets, despite the current predicament, have still managed to remain 50% higher as compared to the start of the year.
Despite BTC falling to $33,117 as of the time of this writing, which is an 8.6% decrease since yesterday, it had been the altcoins who had struggled the most. Ethereum (ETH) had fallen by 10% and might sink even lower if things do not get back on track soon. Binance Coin (BNB) decreased by 13%, and Cardano (ADA) is down by 11%. Dogecoin (DOGE) had fallen to about $0.32.
As of now, only the main stablecoins had managed to stay in the green.
What caused the dip?
Rekt Capital, a technical analyst, and the trader had pinned most of the blame on Tesla and its CEO, Elon Musk. The removal of BTC from Tesla’s list of payment options was certainly a critical blow to the cryptocurrencies. However, there have not been any controversial tweets made by the billionaire since yesterday that would justify the current state of the market.
Furthermore, there has been an increase in the number of attacks on various crypto exchanges and protocols, which had prompted a response from U.S regulators. The more recent attacks that utilized ransomware had highlighted the questionable morality of the crypto industry once again, which only served as ammunition to be used by the authorities to once again claim that cryptocurrencies cause more harm than anything else.