The Cryptocurrency Market Cap Has Slumped To A 5-Month Low, With Almost $350 Billion Wiped Off in A Single Day.

The cryptocurrency market continues to deteriorate as bitcoin and other cryptocurrencies have lost hundreds of billions of dollars in valuation.

On Saturday, January 22, the worldwide cryptocurrency market value is $1.62 trillion, a 12.02% drop from the previous day. As a result, the crypto market cap lost $356 billion in a single day as its price fell from $1.98 trillion to $1.62 trillion.

During the past 24 hours, the total volume of the cryptocurrency market hit $131.90 billion, marking a 26.92% rise.

DeFi accounts for $19.36 billion, or 14.68%, of the total crypto market’s 24-hour volume, whereas stable currencies currently account for $107.34 billion, or 81.38 % of the crypto market’s 24-hour volume. Notably, the market cap was last this low on August 8, 2021.

Given that the cryptocurrency market is now pessimistic as it continues to shrink, several analysts, like Andersen Capital Management’s chief information officer Peter Andersen, believe that “crypto is headed for a major correction.”

Similarly, Gareth Soloway, chief market strategist at InTheMoneyStocks.com, has stated that while Bitcoin’s volatility may force it to go below $20,000, the cryptocurrency’s long-term outlook remain bright.

As a result, former hedge fund manager and Mad Money broadcaster Jim Cramer believes that money exiting the cryptocurrency market would flow into stocks; he tweeted:

“I think there will be a wave of money coming from crypto into stocks.”

The majority of money has fled the market, with the leading digital asset currently down 8.99% in the last day and 17.40% in value over the past seven days. This follows what had already been the worst start to a year in Bitcoin history. It was valued more than $68,000 in November, but it is now worth less than $36,000 now.

Bitcoin’s price had already declined significantly on Thursday night and into Friday, falling from over $43,000 to around $38,500. However, the slide continued early Saturday morning, taking the price to a low of $35,140, though it is presently trading at $35,567, according to CoinMarketCap data.

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Patrick

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