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In the past 24 hours alone, the crypto market has practically been in the green, with several assets reclaiming some values, including Bitcoin. But the trend has suddenly turned in a negative direction. As a result, the majority of crypto assets in the market have fallen dramatically.
Bitcoin has crashed from its high of over $20,000 in today’s trading hours. The token lacked the necessary support to stay at its higher tier. After crossing the $20K mark, BTC fell to around $18,770 later in today’s early trading hours. This was due to a depreciation of more than 6%.
Remember that Bitcoin Hospitalized yesterday saw a huge growth of more than 5%. This caused the market cap to exceed $386 billion. Also, its dominance over the altcoin reached almost 40%.
Other crypto assets were not left out during Tuesday’s bullish trend. Most runners swell up bigger in the green. This growth pushed the total market cap to nearly $1 trillion through huge profits of over $40 billion in one day.
Price Drop for Bitcoin and Wider Crypto Market
In early trading hours today, Ethereum went below the $1,300 level after losing about 7%. Other major altcoins also declined in value, but are now on an upward trend.
At the time of writing, BTC is trading at $19,362, indicating a minor in the past 24 hours. Subsequently, the market cap dropped to $365.8 billion. As a result, Bitcoin’s dominance over the altcoins has fallen by 0.38% in the past 24 hours to 39.46%.
But despite the price drop, BTC’s trading volume has increased. Currently, the 24-hour trading volume stands at over $57.8 billion. This marked a 3-month high for the primary crypto asset.
An on-chain data company, Santiment, explained the pump and dump situation. It stated that the market is experiencing an increase in trading volumes, especially Bitcoin, amid price drops. The spike in trading volume has been gradual in the year since the low at the end of January. It also quoted that BTC price spiked on Tuesday, coming since June 14.
Impact of Macro Factors on Crypto Assets
With inflation soaring, macro factors have dragged crypto assets down. This situation turned around negative for US equities, with bonds, stocks and commodities experiencing volatility.
For a period of time, Bitcoin and all of the cryptocurrencies wade away the pressures of their correlation with US stocks. But they couldn’t keep it up. Hence, the global macro factors, due to high interest rates and other influences, are currently affecting Bitcoin and other crypto assets.
Featured image from Pixabay, Chart: TradingView.com
