On Tuesday, bitcoin dropped by thousands of dollars in a matter of hours, along with the price of many altcoins including ethereum, down more than 10%. Due to record selling pressure, over $300 billion worth of crypto was lost.
As investors await U.S. retail sales data, the dollar was up in Asia on Tuesday morning. The euro fell to a 16-month low. It is believed that the U.S Federal Reserve may raise rates if the reading is strong.
The global markets have taken a beating, as risk assets, including high yields, have become weaker due to concerns over the quality and strength of the economic recovery.
Following a panic sell-off, bitcoin lost more than $5,000 from the height it attained earlier in the week, to remain near the $60k mark.
The broader market is weighing heavily from such bearish sentiments, as the cryptocurrency market value fell by as much as 7% to close at $2.66 trillion for the day. A total of $123.9 billion was traded on the crypto market for the day, an increase of 42.32%.
At present, DeFi accounts for $15.5 billion, 12.54% of the total 24-hour volume of the crypto market. Stable coin volume is currently $93.7 billion, which is 75.68% of the total 24-hour crypto market volume.
Bitcoin is currently trading at $60,926.82. Bitcoin’s dominance is currently 43.15%, a decrease of 0.12% over the day.
There is some optimism among some crypto traders despite the expected market correction that crypto assets, particularly bitcoin, are fast emerging as hedges against risks such as faster fiat inflation, and set to capture the attention of the corporate world.
In contrast, crypto pundits anonymously interviewed by Nairametrics claim the sudden bullish move was long overdue for a correction.
A major factor contributing to the bearish trend prevailing at the bitcoin market is that there is a significant amount of profit-taking at play, as bitcoin’s realized profits are at record highs.