- Cryptocurrency lost over $110 billion in 24 hours with the leading assets losing a lot of ground.
- Bitcoin declined -2.21%, with Ethereum and the rest of the altcoins losing ground with sharper declines of nearly 10%.
- Sentiment in the market indicates macroeconomic issues and regulatory developments drove the general selloff in the virtual assets.
Cryptocurrency space witnessed a sudden fall with over $110 billion eroded in the last 24 hours. The overall fall affected a variety of cryptocurrencies with a clear sign of selling pressure and risk-aversion among investors.
Cryptocurrency Market Sees Market-Wide Drop
According to Watcher.Guru, the general direction of the market is largely bearish with a majority of the assets losing ground. The largest cryptocurrency, Bitcoin (BTC), lost a modest -2.21% during the period. The fall notwithstanding, BTC performed reasonably compared with the rest of the cryptocurrencies.
Ethereum posted the steepest fall of -5.99% that mirrored stronger selling pressure against altcoins. Other major tokens also posted heavy declines with the likes of the Binance Coin falling -4.18%, the Solana losing -9.96%, and the XRP losing -6.06%. The latter of the two altcoins fared the worst and came within a 10% price fall.
Altcoins and Small-Cap Cryptos Face Heavy Selling Pressure
Altcoins fared worse with the volatility of the market worsening. Meme coins including Dogecoin (DOGE) fell -8.18%. The smaller cryptocurrencies fared the worst with some of them falling more than -10%.
The heatmap also showed general declines, particularly among illiquid and riskier positions. The downward direction of the market signifies a decline in speculative investment behavior.
Potential Causes Behind the Market Downturn
The sell-off reflects a shifting attitude of the market that may be caused by macroeconomic factors, regulatory events, or overall declines in risk assets. The higher volatility of the virtual assets may be the effect of external factors.
Sentiments in the market are mixed with investors and traders analyzing the latest occurrences and how they affect the valuation of cryptocurrencies.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
