Although Bitcoin reared its head above $30,000 yesterday, it is now resting under that mark as of press time.
And Bitcoin, the dominant cryptocurrency, is bringing most other coins down with it.
Case in point is Ethereum, with a current value of around $1900, against all-time highs at near $4000.
“Ethereum has fallen by about 2.2% over 24hours. There is an increase in the flow of volume of about 35% in the last 24 hours,” writes an analyst at ZebPay. “Ether’s market cap is currently around $240 billion, which is 2% down over the day.”
Solana and other altcoins are also doing poorly.
“Ripple, Polkadot, and Dogecoin have marked … daily decreases, while BNB has remained relatively still,” writes Jordan Lyanchev at Cryptopotato. “More losses, though, are evident from Cardano, Solana, Shiba Inu, and Avalanche. AVAX is down by 9% in a day and sits well below $30. The crypto market cap has erased all of yesterday’s gains and is back at $1.260 trillion.”
Some analyst suggestions indicate that pressures from a Bitcoin slump could harm the general global economy, partially because big firms have leveraged Bitcoin as a capital reserve asset. This includes remarks from Europe’s central bank.
“More financial institutions engaging with crypto or digital assets being used as a form of payment could increase ‘spillover to the wider economy’ the European Central Bank wrote in a report on Tuesday,” writes Camomile Shumba at Coindesk.
Top firms with BTC holdings include Microstrategy, an early and large adopter, and Elon Musk’s Tesla car company. At press time, TSLA is trending at lows not seen since a year ago, around $670 per share. Of course, other Elon Musk headlines could also be having an effect.
What’s next for crypto? We’ll see if the market can claw back by the end of the week.