Massive 130 Billion Crypto Losses Unfold in Single Day
In recent weeks, the cryptocurrency market has faced a tumultuous period, culminating on July 4 with a significant drop in the value of Bitcoin (BTC) and a host of other prominent digital currencies. The decline was so severe that the overall market capitalization of cryptocurrencies plummeted by over $130 billion in just one day, falling from approximately $2.18 trillion to $2.05 trillion.
The 24-hour chart of the total cryptocurrency market cap. Courtesy of TradingView.
Bitcoin itself is teetering on the edge, struggling to maintain a crucial support level around $57,000, but it’s not the sole contributor to the market’s downturn; the combined market cap of all other cryptocurrencies also saw a $60 billion decrease within the same 24-hour period.
Highlighted Articles:
– ChromaWay’s New Partnership with Amazon Web Services
– UFC’s Khamzat Chimaev Entangled in Cryptocurrency Fraud
– S&P 500 Shows Warning Signs Similar to Pre-Lehman Brothers Collapse
– Orbs Debuts Liquidity Hub on Fenix Finance
Excluding Bitcoin, the 24-hour chart of the total cryptocurrency market cap. Source: TradingView.
The market’s downward trend, particularly noticeable in the early hours of July 4, has been brewing for several weeks. The question arises: why is the crypto market on a decline?
Analysts have begun to predict the end of the meme coin craze, which propelled many such digital currencies to their peak values. Concurrently, major cryptocurrencies have experienced prolonged periods of stagnant trading.
Bitcoin, anticipated to surge to new heights following the April halving event, has instead hovered around $67,000, failing to reclaim its March peak of over $73,000.
The pressure on the market has been escalating. Solana (SOL) faced scrutiny when its stablecoin volume dropped by 90% in a single day, amidst rumors of an impending major lawsuit.
Investors’ concerns have also grown regarding Bitcoin, which is under threat of significant selling pressure. This is due to actions by the German and U.S. governments, which are moving large amounts of confiscated BTC, and the announcement by the defunct cryptocurrency exchange Mt. Gox that it will commence repaying creditors in early July.
The uncertainty surrounding the exact number of bitcoins to be returned to former customers—estimated to be between 65,000 and 140,000 BTC, potentially worth close to $9 billion—has added to the market’s anxiety.
Ultimately, Bitcoin’s price initially stabilized near $67,000 before finding support around $61,000. However, after losing another key support level near $60,000, it appears to be on the brink of a potential freefall at the time of this report.
The 30-day price chart for BTC, provided by Finbold.
As of this writing, Bitcoin’s price stands at $56,723.
**Disclaimer**: The information presented here is not intended as investment advice. Investment decisions involve risk, and you should exercise caution as your capital may be at risk.