The crypto market has now seen more than $50 billion lost in a one-day period as the market lost its recovery streak. This had been expected for the market due to the large recoveries recorded in a short period of time. This has brought down the crypto total market to an important level.
Crypto Market Drops Below $1 Trillion
Bitcoin and Ethereum’s remarkable recoveries last week had done enough to push the whole of the market upward. As a result, the crypt market quickly added more than $100 billion during this time. It had pushed the total market cap above $1 trillion once more, too much jubilation among crypto investors.
Related Reading | Ethereum Weekly Exchange Net Flow Points To Growing Accumulation Trend
However, this recovery would prove to only be short-lived given that the crashes had been as swift. In the span of one day, the crypto market had lost more than $50 billion following the dips and has now lost its hold on the $1 trillion market cap.
Presently, the total crypto market cap is sitting at $944 billion, more than a $100 billion loss from where it was sitting last week. The loss pattern over the last few days is now seeing cryptocurrencies in the space testing an important support level and mostly failing to hold.
Bitcoin has since lost its footing at $22,000 and is now trading at low $21,000s, while Ethereum has declined to the $1,400 territory. This has dragged down their market caps to $402 billion and $171 billion, respectively.
Market Sentiment Takes A Dive
As the crypto market had recovered, the market sentiment quickly climbed. For the first time in two months, investor sentiment had successfully made it out of the extreme fear territory to be sitting in fear. With the continuation of the recovery, the sentiment score had increased to close at a new two-month high of 30 last week.
Related Reading | More Than 57,000 Traders Liquidated As Bitcoin Declines Below $22,000
The sentiment had consistently been up for the last couple of days until Monday, when the prices had begun to fall. The dip in sentiment saw the Fear & Greed Index return a score of 26 for the last day, signifying that investors are once again becoming wary of the market.
While the bearish trend is not completely established yet, it is gradually becoming the norm over this time. Following historical trends, there will be recoveries and pullbacks, which will see the market establish lower highs and lower lows.
Featured image from CNBC, chart from TradingView.com
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