$170 Billion Lost in Crypto Market Crash


Active Trader
Dec 11, 2020
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.
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.