Sunday saw more Bitcoin and other cryptocurrencies dip further in price,which has since led to about a 50 percent wipe off the cryptocurrency market capitalisation. According to data from Binance, bitcoin price dipped to $31,227.34 on Sunday, representing at least a 15% price drop within 24 hours. Although this is not the highest volatility bitcoin price has seen since the market correction kicked into effect, other cryptocurrencies were not spared as most bled in double digits, with even BNB dropping by over 27% in a single day.
Since bitcoin saw it's all-time high on April 13th, yesterday’s market-wide sell-off resulted in the total cryptocurrency market cap losing another $250 billion in value to $1.33 trillion. On aggregate, this amounts to a 46 percent drop from it's $2.56 all-time on May 11.
Most other cryptocurrencies have since lost over 50 percent of their ATH prices, DeFi tokens in particular. Larry Cermak, Director of Research at The Block posted a chart showing how badly beaten most tokens are in this dip. He tweeted:
“Doesn't get much more brutal than this, to be honest. Most have dropped this much in less than two weeks”
As bears hold their grip, they stage buy opportunities for bitcoin whales
As the market continues its correction, large BTC holders, characteristically called whales, have been topping up their holdings. Anthony Pompliano, in one of his substack newsletter, made this case showing that the bears’ market beat-down staged a buying opportunity for the bitcoin whales. Corroborating his claim from data from Glassnode, “Pomp” showed that whales purchased 122,588 BTC during the height of the market crash of last week, which was on Wednesday.
Also, at the height of the crash on May 20, an ItsBlockchain publication reported how a mysterious bitcoin whale sold off 3,000 BTC at $58,000 price only to accumulate more by buying back 3,521 with the same capital realised earlier.
Kyle Davies, co-founder at Three Arrows Capital, a hedge fund, while speaking with Bloomberg in a recent interview, said
“People that were borrowing money to invest, they were wiped from the system [...] Every time we see massive liquidation is a chance to buy. I wouldn’t be surprised if Bitcoin and Ethereum retrace the entire drop in a week.”
Crypto critic and precious metal bull Peter Schiff have not failed in bashing crypto during this time. Schiff tweeted that
“Ethereum took out its May 19th low of $1,850. Bitcoin is less than $2K away from taking out its May 19th low too. On May 10th, the total market capitalization of cryptocurrencies hit a high of $2.485 trillion. It took less than two weeks to fall below $1.3 trillion.”
Since Sunday’s $31k region bitcoin price drop, the largest cryptocurrency by market cap has climbed back up and trading at $35,756 as of press time, with the overall crypto market cap reported at $1.46T.