$170 Billion Lost in Crypto Market Crash

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Dec 11, 2020
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Since the start of 2021, the cryptocurrency market has been on the rise. The market cap gained a noticeable value over the last 10 days. However, Bitcoin dropped from $41 500 to $34 000, setting in motion a huge financial loss, costing the crypto market more than $170 billion. Before the crash, the market was worth $1.1 trillion dollars (just last Sunday!). After the collapse, the market’s overall value went down to $940 billion.

Currently, Bitcoin is worth $33 500, $8000 less than yesterday’s cap of $41 500. The crypto asset is down 15 percent which is an enormous amount in market terms. Most experts attribute the drop due to intense selling pressure in Asia. The second-largest cryptocurrency, Ethereum, is down 18% when compared to yesterday. The digital coin went from $1100 to $1050. XRP, reached $0.27, again indicating a near 18% stumble.

The crypto crash started in the United States session as soon as the price of BTC dropped from $39 000 to $35 000 within a matter of minutes. Just as fast as that, it recovered some lost value to $3 750, however Asian buying interest added enormous pressure on the instrument. Whale Alert, a blockchain analytics and tracking company, reported big disturbances when an unknown user moved $138 worth of bitcoin (3875 coins to be exact) to an undisclosed e-wallet.

Aside from the big crypto players, more minor crypto assets have been subjected to loss, including Litecoin, Cardano, Chainlink, Bitcoin Cash, Stellar, and Polkadot.
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The crash was painful, sure, but Bitcoin seems to be recovering. I just worry about how deep the correction will be when it begins in earnest.