Bitcoin Tumbles Below $40,000, Others Hit Hard
The largest cryptocurrency in the crypto universe trades red Friday as investors swing to selling rallies after the previous recovery, thus sending Bitcoin price below $40,000.
According to data from fresh market data, other lower cap assets were harder hit as Bitcoin spiralled downward, plunging the market capitalisation to $1.8 trillion.
Ethereum, Solana, and many other assets suffered harder from the downturn. Ethereum is down 5.3% today, while Solana, Avalanche, and Terra, three Layer 1 chains often touted as Ethereum competitors, have tanked.
While Bitcoin was down 4.6%, trading at roughly $39,800, Solana, Avalanche and Terra have seen their prices down about 6%, 8%, and 8.5%.
At the same time, the Metaverse tokens Decentraland and the Sandbox also declined alongside two of DeFi’s most established projects, Aave and Curve. Read: Dollar-Backed Stablecoins to Become Part of Payment Universe
The latest dip follows weeks of rocky price action in the crypto market. While Bitcoin and other assets have occasionally shown bullish momentum, most assets are trading significantly down from their record highs.
Bitcoin is 42% short of the $69,000 level it breached on Nov. 10, and Ethereum is 42.2% down from when it topped $4,800 on the same day. Solana is 64.9% down from its high, and many lower cap assets have fared even worse.
Dogecoin, for instance, is trading 81.1% below its all-time high. The latest plunge puts the global crypto market cap at about $1.9 trillion, down over 36.6% from its $3 trillion peaks. While Bitcoin and most of the crypto market has had a rocky few weeks, some assets are defying the trend.
The NFT market has shown a low correlation with fungible crypto assets in recent weeks, with many top-tier NFTs trending up even as major assets struggle to make new highs. #Bitcoin Tumbles Below $40,000, Others Hit Hard