The cryptocurrency market looked equally terrifying yesterday as all prices continued to fall. Concerns about a debt crisis at Evergrande Estate Group, one of China’s largest real estate companies, caused stock markets such as the S&P 500 to plummet. However, this probably also pulled the crypto market down. We also saw a similar trend on the infamous “Black Thursday” back in March 2020:
1/ After the price action we have seen today, it is good to remember that #Bitcoin is exposed to the risk of liquidity events in the broader market.
That means if the SP500 dips significantly, leveraged traders will definitely sell some BTC to raise cash.
See March 2020. pic.twitter.com/bM02HVcD6Q
— ecoinometrics (@ecoinometrics) September 21, 2021
The total market cap of crypto fell from $2.24 trillion to $2.04 between Sunday and Monday, dropping to $1.92 trillion last night. This morning there is a small recovery, prices are slowly starting to turn green, and the market cap comes in at $1.99 trillion.
Bitcoin
Bitcoin (BTC) was still around $48,000 on Sunday and dropped all the way to $44,500 yesterday morning. The price then continued to fall and bitcoin already dipped to $42,500 in the afternoon. Still, after that, support appeared to hold around USD 44,000. However, that came to an end shortly after midnight, when bitcoin again plunged sharply. Bitcoin dropped all the way to $40,500, but then made another big bounce back up to $43,000. This morning the $43,000 also seemed to give up for a while, but the price is still holding up for now.
However, bitcoin does not look very stable yet, and another test of the $41,000 or even $40,000 may be in the offing. However, we see the volume increase significantly, which may indicate that not only are people selling out of panic, but that some investors are also buying the dip. Nevertheless, we may expect even more volatility in the near future.
" $BTC Volatility on the way" by @gaah_im
— CryptoQuant.com (@cryptoquant_com) September 21, 2021
altcoins
Ethereum (ETH) still largely follows bitcoin. Ether was still around USD 3,400 on Sunday and dipped to USD 2,950 yesterday afternoon. There, ether bounced back up to $3,100, but by nightfall the price was unable to hold on to this. Last night, ether dipped all the way to USD 2,800, its lowest in more than a month. However, ether then bounced back up again and the ETH price is climbing back towards USD 3,100 at the time of writing.
Cardano (ADA) fell faster than the above two cryptos earlier last week, but held up better yesterday. Still, ADA dipped below USD 2.00 for the first time in a month last night, but has since recovered to USD 2.14.
Solana (SOL) is the greenest of the top 10 prices today, but also dipped significantly last night. SOL came in at $125 and has now recovered to $143. Polkadot is the reddest of the top 10, dropping back below $30.
In addition, there are a few notable outliers in the top 100. Cosmos (ATOM) was the only course in the top 100 that turned green yesterday, but this morning it is deeply in the red. ATOM briefly dipped to $32 last night, is now recovering to $35, but is still 11% in the red.
In contrast, celo (CELO) is up 21% and is now just above $7. That’s the highest ever for CELO, outside of a crazy peak in late August. The fastest riser on the market today is OMG network (OMG). The OMG price jumped quite a bit yesterday afternoon and was able to hold at $11 while the rest of the market dipped. That is the highest price for OMG since May, but it is still almost 60% below the ATH of 3 years ago.