Market Retreats Sharply, Dragged Down By Bitcoin’s 7.51% And Ethereum’s 6.16% Plunge

The global crypto market dived sharply on Friday, a trend observed for most of the week, amid several fast-paced developments, including China’s real estate giant Evergrande Group’s filing for bankruptcy protection in New York and rumours that SpaceX is selling Bitcoins (BTC).

On Friday, the cryptocurrency market was down 6.20 per cent to $1.07 trillion, while the total trading volume was up by 92.92 per cent to $69 billion.

Sathvik Vishwanath, co-founder and CEO of Unocoin, a crypto platform, says the cryptocurrency market faces significant declines amid various catalysts. Over the past week, the values across major tokens, mainly Bitcoin, dropped significantly. BTC fell a staggering 9 per cent, from $28,500 to $25,000 on Binance, triggering a cascading effect across the market. Other major tokens, such as Litecoin (LTC), fell by as much as 14 per cent.

The unverified claims of SpaceX selling bitcoins and Evergrande’s bankruptcy filing “have conclusively shown to affect prices significantly”, Vishwanath adds.

The following are some latest trends in the market and cryptocurrency prices.

Market Trends

CyberConnect (CYBER) was the most trending cryptocurrency for the fourth consecutive day, up by 17.56 per cent to $4.77. Its 24-hour trading volume was $52.67 million.

Injective INJ was the top gainer, up by 3.92 per cent to $7.48 in the last 24 hours. Its 24-hour trading volume was $72.64 million.

Conflux CFX was the top loser, down by 18.15 per cent to $0.1302 in the last 24 hours. Its 24-hour trading volume was $60.65 million.

DeFi fell 5.52 per cent to $3.81 billion, Coinmarketcap.com reported.

Cryptocurrency Prices

Bitcoin: Bitcoin was down by 7.51 per cent to $26,502.76. Its 24-hour trading volume was $33.81 billion. It is currently ranked number 1 on Coinmarketcap, based on market cap. Bitcoin’s market dominance was at 48.48 per cent, down by 0.56 per cent over the last 24 hours.

Ethereum: Ethereum was down by 6.16 per cent to $1,689.71 from the previous day. Its 24-hour trading volume was $16 billion.

Tether: Tether was up by 0.12 per cent to $0.9998 in the last 24 hours. Tether’s 24-hour trading volume was $50.67 billion. It is ranked third on Coinmarketcap.

Other Altcoins

Solana (SOL) was down by 5.03 per cent to $22.06. Its 24-hour trading volume was $651.64 million.

Avalanche was trading at $10.85, down by 5.25 per cent, while its 24-hour trading volume was $159.83 million.

Cardano ADA was down by 4.40 per cent to $0.2646 from the previous day. Its 24-hour trading volume was $407.92 million.

Meme Coins

Dogecoin (DOGE) was down by 8.73 per cent, with a 24-hour price of $0.06209.

Shiba Inu was down by 9.55 per cent to $0.000008381.

Decentralised Finance

DeFi coin was trading at $0.0006741, down by 5.44 per cent.

Yearn.Finance was down by 5.40 per cent to $5,441.19 over the last 24 hours, while its 24-hour trading volume was $40.67 million.

Commenting on the market trends, Vishwanath said the market structure and liquidation likely played a significant role in the sudden decline than a single underlying catalyst. "The market was relatively flat and illiquid, setting the stage for rapid and unexpected price movements. A high level of open interest, representing outstanding futures contracts, contributed to a rapid price decline, followed by increased selling activity," says Vishwanath.

However, Vishwanath adds that the market is bracing for significant developments. A major decision is expected in the ongoing Grayscale Vs the Securities and Exchange Commission (SEC) case that could affect the market's trajectory. A verdict in Grayscale's favour could trigger a market-wide rally, while an unfavourable outcome could lead to further market turbulence.