There was bleeding in the crypto market on Sunday and bitcoin fell below $28,000. Its Ethereum counterpart also fell sharply in the crisis. The global crypto market cap stood at around $1.1 trillion due to a massive correction in the valuation of heavyweight bitcoin. The bears in the crypto market come after US inflation hit a new 40-year high.
in present, Bitcoin It is trading at $27,454.31, down 4.96%. Thereafter, the coin’s market cap reached close to $532.28 billion. Despite the sharp drop, the dominance of Bitcoin was not affected, instead it increased. This digital coin is the leader in the crypto market, with a dominance of 47.48%, having gained 0.43% over the day.
In a single day, the price of bitcoin has dropped by over $1,670. The coin has touched intraday highs and lows of $28,938.19 and $27,266.28 respectively.
Meanwhile, its counterpart Ethereum is down nearly 8% and was trading near $1,460. second largest cryptocurrency Its market cap is around $177.45 billion.
According to CoinMarketCap, the global crypto market cap fell 5.9% on the previous day to nearly $1.1 trillion. However, its total crypto market volume increased by 20.46% to $85.16 billion in the last 24 hours. Meanwhile, the total volume in DeFi currently stands at $6.87 billion – 8.07% of the total crypto market 24-hour volume. The volume of all stablecoins is now $73.31 billion which is 86.09% of the total crypto market 24-hour volume.
Notably, Bitcoin is down more than 7% on a weekly basis, while Ether is down almost 18% over the past seven days.
As bitcoin trades in the deep red, investors wonder where the cryptocurrency is headed. Crypto experts agree that bitcoin is not on the bottom. The current bloodbath is seen as a buying opportunity in bitcoin to hedge funds against multi-year high inflation.
Crypto Rover, a crypto enthusiast, said via his Twitter account that bitcoin will never reach $20,000. He holds a long position on bitcoin. “Bitcoin always turns upside down when you least expect it,” he said.
“Bitcoin needs to close above $28.2k to remain in a falling wedge,” said the enthusiast.
Meanwhile, Dennis Porter, CEO and founder of the Satoshi Act Fund and executive producer of Compass Mining, said via his Twitter account, “If you have a 10-year mindset on bitcoin, the price drop makes you happy. You’re worried short-term gains, drops scare you,” adding, “Zoom out, reduce your time preference, and learn to appreciate these buying opportunities.”
Bitcoin’s latest bullish breakout is not a new scenario. The downside of the cryptocurrency can be nervous for any investor, however, historical data shows that Bitcoin has made strong long-term gains. The sell-off is like a bubble bursting the cryptocurrency at a huge margin and bringing fresh corrections before the crypto takes a position for a bull run.