Crypto Correction Deepens, Bitcoin Drops below $46,000

Bitcoin and Ethereum are struggling to find positive momentum these days. Both digital assets are well below their all-time highs of November 2021. On Monday, BTC dropped below $46,000 for the first time in several weeks.

Additionally, Ethereum is facing a similar situation as its market cap has dropped below $450 billion. The crypto asset is down by nearly 5% in the last 24 hours. Since touching an all-time high of almost $4,900 on 10 November, ETH has lost approximately 25% of its value.

Overall, the market cap of digital currencies has dropped by nearly $900 billion in the last 5 weeks. After reaching an all-time high market cap of $3 trillion, the total value of the crypto assets has declined gradually over the last 5 weeks. Currently, the market cap of digital assets stands at around $2.14 trillion.

“Bitcoin and ether continued their pre-Christmas slump last week with both crypto trading down from their recent ATHs. Bitcoin faced a volatile week of trading but stayed firmly below the $50,000 level. After a brief rally to over $49,000 on Wednesday, the crypto asset has continued a downward march and is now trading around $46,000. ETH meanwhile has been on a similar trajectory, plummeting at one point on Wednesday to near $3,600, before recovering to over $4,000. The crypto asset is currently down again though, trading around $3,800,” Simon Peters, Market Analyst at eToro, said.

Crypto December

Historically, December remains the most volatile month for Bitcoin and other cryptocurrencies. In December 2017, BTC reached an all-time high of nearly $20,000. The crypto asset crossed its previous all-time high in December 2020 and touched almost $30,000.

While the volatility in December 2021 has remained quite low compared to the previous years, BTC fundamentals have improved significantly. BTC mining hash rate has also climbed sharply in December 2021.