Crypto Market Cap Drops Below $1 Trillion as Bitcoin, Altcoins Deep in Red: This Week’s Recap

The past seven days turned into a bloodbath across the entire cryptocurrency market, which dropped below $1 trillion in terms of total capitalization. This happens for the first time since January 14th.

The decline comes on the back of a lot of negative macroeconomic developments, so let’s unpack.

First things first, Bitcoin’s price is trading around $20,000, albeit slightly below it at the time of this writing. The intraday low sits at $19,549 on Binance and BTC is down about 15% in the past seven days. Most of the losses happened during the last 24 hours, though.

The rest of the market is no different. Ethereum is also down 15%, BNB – 9.1%, Dogecoin – 20%, MATIC – 17.7%, SOL – 20.5%, and so forth – you get the picture. The only notable exception is XRP. Interestingly, it’s down only 2% and is the best performer among the top 10, so to speak.

The crash took place throughout the past 24 hours and not without a good set of reasons. First, Silicon Valley Bank – a major financial institution with a quarter trillion in deposits – saw its stock crash by roughly 70%, after it attempted (and failed) to raise funds through a share sale to patch some massive $1.8 billion hole. Investors got worried about their funds, which impacted the entire sector negatively.

At the same time, US President Joe Biden presented the new budget, which gets rid of tax-loss harvesting for crypto investors and also proposes serious increases on different taxes. While many believe that the budget won’t pass, tension intensified.

The New York Attorney General filed a lawsuit against KuCoin, where it alleges that ETH is a security. For the first time ever, an official alleges that ETH is security in court. This put additional regulatory pressure, to which Gary Gensler – the Chairman of the SEC – also added fuel through an op-ed where he said that almost no crypto entrepreneurs have followed the regulations of the Commission. Fun times.

It’s safe to say that we’ve had better days, but it’s interesting nonetheless to see how the market will shape up in the coming weeks. Is this a retest of $20K? Time will tell.

Market Data

Market Cap: $965B | 24H Vol: $108B | BTC Dominance: 39.9%

BTC: $19,929(-15.1%) | ETH: $1,406 (-15%) | BNB: $273 (-9.1%)

This Week’s Headlines You Better Not Miss

6 Possible Reasons Why Bitcoin Crashed Below $20K in a Day. Bitcoin slid below $20K today, losing over 15% in the past week. Here are six possible reasons for the most recent market turmoil and whether there’s more pain ahead.

Huobi Token Flash Crashes by 90% in Minutes: Here’s Everything You Need to Know. HT, the native cryptocurrency of Huobi, dropped by over 90% in almost an instant. In minutes, the token was trading at around $0.30 and almost immediately skyrocketed back to almost where it was before the flash crash. It’s still down over 20%.

Here’s Everything You Need to Know About the Latest Grayscale-SEC Developments. Michael Sonnenshein, the CEO of Grayscale, said earlier this week that he is very encouraged by the legal progress the company is making toward potentially converting GBTC into an ETF. Here’s everything you need to know about the latest developments in court.

NYAG Alleges Ethereum is a Security in Lawsuit Against KuCoin. Letitia James, the New York Attorney General, has filed a lawsuit against cryptocurrency exchange KuCoin for selling both commodities and securities without the needed registrations. One of the securities that the NYAG alleges the exchange of selling is Ether.

President Biden’s 2024 Tax Plan to Target Crypto Wash Trading and Capital Gains. President Biden released his official 2024 budget plan on Thursday. Cryptocurrency transactions are caught in the crossfire, while the office also proposes to increase a lot of the existing taxes.

Arthur Hayes Proposes Bitcoin-Backed Stablecoin NakaDollar. The co-founder and former CEO of BitMEX – Arthur Hayes – proposes the creation of the NakaDollar. This is a stablecoin that’s backed by Bitcoin – created without the services of the traditional banking systems and, therefore, exempt from fiat regulations.

Charts

This week we have a chart analysis of Ethereum, Ripple, Cardano, Dogecoin, and Polygon – click here for the complete price analysis.