Crypto Crash Intensifies as Bitcoin Drops 10%

The overall market cap of cryptocurrencies dropped by more than $100 billion on Friday.

Bitcoin, the world’s largest digital currency, lost around 10% of its value on Friday after the panic among retail traders triggered a $100 billion sell-off in the crypto market. As of writing, BTC is trading near $45,500 with a total market cap of $850 billion.

The cryptocurrency market lost nearly $400 billion during the last 5 days. The total value of cryptocurrencies reached an all-time high of $1.75 trillion on Saturday after Bitcoin and Ethereum registered record highs. The crypto market reached a low of $1.37 trillion on Friday.

According to the latest data published by crypto analytics firm Bybt.com, around $900 million worth of long cryptocurrency positions got liquidated in the last 24 hours as Bitcoin and Ethereum lost nearly 10% of their values in a single day. Approximately 142,000 crypto traders were liquidated during the last 24 hours.

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Despite the positive news regarding the institutional adoption of Bitcoin and other digital currencies, the crypto market remained in a downtrend during the last 5 days. MicroStrategy, the world’s largest business intelligence firm, announced earlier this week that the company has purchased more than $1 billion worth of Bitcoin to increase its BTC holdings.

Market Correction?

Major institutional holders termed the recent downtrend as a healthy correction for the cryptocurrency market and an opportunity for new traders to enter the market but the high volatility and limited liquidity have raised concerns about the overall growth of digital assets. Bitcoin has now lost more than $200 billion of its market cap in the last few days. Bitcoin’s current market dominance stands at around 61.7%. Ethereum remained the worst-performing crypto-asset among the top 5 as ETH lost more than 25% of its value in the last 5 days. ETH crashed from a high of $2,020 to as low as $1,450 within this week. As of writing, the world’s second-largest crypto asset is hovering around $1,475 with a total market cap of $169 billion. Tether is the third-largest cryptocurrency with a market cap of $35 billion.

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