The Crypto Market in the Red Zone
The crypto market is experiencing losses, with altcoins and Ethereum (ETH) leading the pack. This decline comes two weeks after the approval of a Bitcoin (BTC) ETF by the SEC.
On-Chain Data Shows Monthly Lows
On-chain data reveals that several crypto assets are trading at monthly lows, indicating a contrast to the price increases seen at the end of last year.
Sell-Off Across Bitcoin and Altcoins
Both Bitcoin and various altcoins are experiencing a sell-off, resulting in a decrease in daily trading volumes for cryptocurrencies.
Total Crypto Market Capitalization
In the last 24 hours, daily trading volumes have declined by 6.61%, reaching $46.27 billion. As a result, the total crypto market capitalization now stands at $1.56 trillion.
Decreased Activity in DeFi
With asset prices down, decentralized finance (DeFi) volumes have also plummeted to $3.6 billion, representing 7% of the entire crypto market. This indicates reduced activity and sell-offs.
Ethereum Takes a Hit
Ethereum has experienced the largest loss among the top 20 altcoins over the past seven days, with its decline reaching double figures.
At the time of writing, ETH is down 10.7% in a week and is currently trading at $2,212, experiencing a slight slump of 0.4% in the past 24 hours.
Like many other assets, Ethereum gained momentum in Q4 2023 after a slow start to the year following the bear market of 2022. However, the gains made in December have been wiped out due to the recent market correction.
Other Altcoins Facing Losses
Solana (SOL) and Ripple (XRP) have also experienced losses in the past week, with declines of 6.69% and 6.4% respectively. Cardano (ADA) and Avalanche (AVAX) have also plunged 5.54% and 7.5% in the past week.
Bitcoin’s Sell-Off Continues
Following the approval of spot ETFs, Bitcoin has also faced a correction in its price. This has led to speculation that it was a sell-the-news event.
Prior to the approval, there was increased institutional investor interest in Bitcoin, resulting in a surge in its price. Analysts predicted a significant price increase after the approval as it provided a new opportunity for investors to enter the market.
However, Matrixport now projects a potential price decline to $36,739 before a rebound, indicating continued volatility in the market.
Hot Take: Ethereum Leads Weekly Altcoin Losses as Wider Market Sell-Off Continues
The crypto market is currently experiencing a sell-off, with Ethereum leading the way in terms of weekly losses among altcoins. This decline comes after a period of gains towards the end of last year.
Bitcoin’s sell-off following the approval of spot ETFs has drawn attention from commentators who believe it was a sell-the-news event. The market correction has led to predictions of further price declines before a potential rebound.
Overall, the crypto market remains volatile, and investors should closely monitor price movements and market trends to make informed decisions.
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