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Cryptocurrencies Plummet, Market Cap Loses 10% Within a Day

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All of the cryptocurrencies are currently suffering from a steep drop in their prices. The market capitalization of the crypto market was $218 billion yesterday, however, it has declined to $192 billion today.

CoinMarketCap shows that all of the cryptocurrencies are in the red. Last week, Bitcoin dropped from $7,058 to $6,222 within a day and has been fluctuating wildly ever since . However, Tuesday’s listing shows that the rest of the cryptocurrencies are falling even more than Bitcoin.

For instance, at the time of writing, Ethereum has dropped by 18.39%, Ripple by 14.73%, Bitcoin Cash by 16.77%, Litecoin by 14.89% and Cardano by 19.6%. NEO, Tron, IOTA and Binance Coin have all lost more than 20% in the last 24 hours.

Meltem Demirors, crypto investor and advocate, told CNBC yesterday that interest in crypto prices resulted in a bubble. However, the bubble has now burst and crypto may now find its level. “What we saw in crypto was this massive run-up, where everyone got ‘FOMO,’ or fear of missing out, as we like to say. What it caused is a speculative bubble,” said Demirors.

Bitcoin still hasn’t regained even close to the value that it lost earlier this year. Demirors explained, “We are starting to see real traction. A lot of it is really dependent on finding those data points, those metrics, that are going to drive that growth story.”

The fall in these prices has been linked to the delay in approving Bitcoin ETFs by the US Securities and Exchange Commission (SEC). FXTM’s chief market strategist, Hussein Sayed, told Business Insider that if SEC delays the ETFs in the upcoming weeks, people can “expect to see a further selloff”.

Every time crypto market loses it value, people tend to dump their funds as soon as they can. Now though, crypto advocates are urging people to refrain from selling their cryptocurrencies too hastily.

Image Credit: Deposit Photos

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