Bitcoin Drops 20% in 7 Days, Crypto Market Loses $500 Billion

Bitcoin saw a major price correction on Saturday as the digital currency lost nearly 10% of its value within 1 hour. Overall, BTC is down by almost 20% in the last 7 days. Being the world’s most dominant cryptocurrency, Bitcoin remained the hardest hit digital asset in the past week.

While BTC’s market cap dipped by approximately $200 billion, the total value of global crypto-assets crashed by almost $500 billion. Also, Ethereum (ETH), Binance Coin (BNB), Solana (SOL), Cardano (ADA) and XRP lost substantial value over the weekend.

Another notable thing that happened with Bitcoin in the last few days has been a drop in its market dominance. Once it accounted for almost 60% of the total market cap of digital assets, BTC now only accounts for 40% of the overall crypto market cap.

“Bitcoin fell all the way to $43.5k about an hour ago, along with Ethereum dropping to $3.54k. However, prices are bouncing back with the largest buy the dip interest spike in 3 months. Renewed covid concerns among larger stakeholders should tell the story,” Santiment tweeted on 4 December.

Bitcoin Futures Market

With a significant correction in its price, Bitcoin witnessed a decline in its total futures open interest. According to Glassnode’s recent data, BTC’s futures open interest crashed by 25% in one day. “BTC futures markets have experienced a significant deleveraging event, with over $5.4B in open interest closed yesterday. Total futures open interest declined from $22B to $16.6B in one day, a decline of 24.5%,” Glassnode highlighted.

Bitcoin is currently trying to stabilize near the $48,000 price level. In contrast, the crypto market has lost its important level of $2.5 trillion. The overall crypto market capitalization now stands near $2.2 trillion, which is its lowest level since October 2021. However, the digital asset, Terra (LUNA) has entered the list of the 10 most valuable cryptocurrencies. LUNA now has a market cap of over $24 billion.