Bitcoin (BTC) Tumbles, Altcoins Suffer Major Correction

The global crypto sell-off accelerated on 24 January after Bitcoin tumbled below $33,000 for the first time since July last year. The digital asset market cap suffered a drop of more than $150 billion on Monday.

In total, the crypto market has lost nearly $1.4 trillion worth of market value since November 2021. Being the largest digital currency by market cap, Bitcoin accounted for most of the losses in the digital asset market. The most dominant cryptocurrency has lost almost $500 billion worth of market cap in the last 8 weeks.

Crypto liquidations are also booming. In the past 24 hours, $100 million worth of long Bitcoin positions got liquidated. Overall, more than 104,000 crypto trading positions were liquidated within a single day.

The plunge in Ethereum was even worse. The digital asset is now down by approximately 55% from its all-time high of $4,860 on 10 November 2021. Just in the last 7 days, ETH has lost over 30% of its value. However, in the latest ETH sell-off, the top 10 non-exchange addresses on the Ethereum network have increased their accumulation.

“Ethereum’s top 10 non-exchange whale addresses have pushed to an All-Time High of 26.22m ETH held, as weak hands are releasing their coins on this dip. Meanwhile, top ETH exchange addresses have dumped to 3.52m ETH, the lowest amount since August 2015,” Santiment noted.

Market Sentiment

The crypto market sentiment has turned negative for major assets. While the adoption of digital currencies, NFTs, DeFi and Metaverse have increased in the last few months, short-term investors seem skeptical about returns. As a result, the dump is accelerating.

Commenting on Bitcoin’s price movements, Simon Peters, Market Analyst at eToro, said: “Bitcoin has fallen some 50% from its all-time high (ATH) above $69,000. The world’s largest crypto asset began the week trading above $42,000 but began falling heavily on Thursday as bond yields in major economies spiked.”