The cryptocurrency market has been hit last night. Bitcoin (BTC) lost 3.8% of its value in the last 24 hours and Ethereum (ETH) followed with a 4.9% price decrease during the same period of time. The crypto industry seems to be in a bear market and this can be seen in the valuation of most crypto assets.
Bitcoin and Ethereum Fall
According to data shared by CoinGecko, Bitcoin has fallen below $35,000 and Ethereum is getting closer to $2,500. This shows that the cryptocurrency market continues to trend downwards and that there is growing selling pressure in the crypto industry.
It is also worth pointing out that there have also been other virtual currencies that have fallen as well during the last hours. In the last 24 hours alone, BLUNA fell by 12%, LUNA registered 11.3% losses, FXS fell by 8.8% and TFUEL is being traded 8.7% down.
Besides stablecoins such as Tether (USDT), Binance USD (BUSD) or USD Coin (USDC), some virtual currencies registered gains. These digital currencies include Tron (TRX), Tezos (XTZ), Algorand (ALGO) and GMT. All of them registered at least a 1% gain in the last 24 hours.
Among the top 10, the worst performer was LUNA with 11.3% losses, followed by Ethereum (ETH), falling by almost 5%. It is worth pointing out that Bitcoin has already retraced by 50% from its all-time high when it was close to $69,000. That means that there has been a strong correction from November 2021 until now.
When the market starts moving downwards, money flows from altcoins to Bitcoin and other long-standing virtual currencies, which are considered low risk. Instead, when the market moves higher, it usually works in the other way: funds move from BTC and safe and stable assets to stablecoins.
Despite the recent market drop, Bitcoin did not increase its market dominance related to the whole cryptocurrency market. Since early 2021, Bitcoin market dominance is close to 41.20%. It would be interesting to see what happens if Bitcoin continues falling and the market enters a deeper bear trend. This could create a situation in which different crypto projects leave the market and survive only those that focus on real products and services rather than hype.
Another thing to take into consideration is related to Bitcoin falling to $30,000. This is a very important price level for Bitcoin as breaking below it could push the coin even lower. Therefore, bulls should make everything they are able to sustain Bitcoin’s price above $30,000. Otherwise, the bear market could get longer and BTC could move lower.