The cryptocurrency market contracted by nearly 2% on Wednesday, descending to a total value of $2.23 trillion. Bitcoin reached a daily low of $60,760 per unit, while ether declined to $2,944 per coin.
Crypto Market Continues to Slide — QCP Capital Reports Increasing Market Anxiety
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Cryptocurrency Market Loses More Than $400 Billion in a Week Amidst Severe Volatility
Since the previous week, the crypto market has experienced significant losses, with over $400 billion erased from its overall valuation. On Wednesday alone, bitcoin ( BTC) declined by 2%, and has lost 10.9% in value against the U.S. dollar over the last week.
Ether has seen even steeper declines, falling 2.4% today and 14.3% over the past seven days. Among the top ten cryptocurrencies, Solana ( SOL) experienced the most significant drop, plummeting 21.8% against the U.S. dollar.
Global trading volume across the cryptocurrency market has decreased by 25.9% compared to the previous day, totaling $86.99 billion in swaps globally over the last 24 hours. Despite the downturn, Bitcoin’s dominance within the market remains pronounced at 51.7%, with ether accounting for 15.3% of the market’s total capitalization.
Today, the highest trading volumes are reported for BTC, ETH, SOL, DOGE, XRP, and BNB. The recent downturn saw bitcoin’s price dip to the $60,760 range, triggering a wave of liquidations throughout the market, totaling $39.11 million at press time. Of these, $16.09 million originated from BTC long positions, with an additional $8.66 million coming from ether long positions.
The volatility spikes as the market anticipates Bitcoin’s fourth halving event. Following today’s price drop, Bitcoin stabilized slightly above $61,000 by 11:00 a.m. Eastern Time on Wednesday. Fifteen minutes later, BTC was struggling to rise above $61,000. On April 16, analysts at QCP Capital highlighted increasing market anxiety, noting a deeper downside skew in ether risk reversals, now at -20%.
The Singapore-based firm anticipates this nervous sentiment will persist amid escalating tensions from the Iran-Israel conflict and recent weaknesses in U.S. equities. “However, we continue to see consistent sizable demand for BTC and ETH calls for longer-term expiries (out to Mar 2025),” QCP added.
What do you think about the crypto economy continuing to inch downward? Share your thoughts and opinions about this subject in the comments section below.
