Crypto Markets Lose Over $800 Billion In A Week As Bitcoin Bloodbath Accelerates
Well that escalated quickly…
The total market cap of the cryptocurrency space has crashed by more than $800 billion since its peak last week, from over $2.5 trillion on May 12th to just above $1.7 trillion this morning (the lowest since March)…
Bitcoin has erased 50% of its gains from the start of the most recent rally (and found support there) after breaking below its 200DMA for the first time since March 2020…
Note that Bitcoin is back to the Feb 8th opening price, when Tesla made its Bitcoin announcement…
And Ethereum broke back below its 50DMA (and found support there)…
However, despite the full-frontal FUD assault that the crypto market has been under in recent weeks, many altcoins have seen their prices breakout over the past couple of days as traders rotate out of underperforming tokens and into tokens that have turned bullish.
The standout performance of the week goes to MATIC, the native token of Polygon, a rapidly rising Ethereum layer-two solution that has morphed into an oasis for traders looking for lower fees.
Other notable double-digit gainers include 40% gains for ARK and Celer Network’s CELR, as well as 20% gains for AAVE and Helium Network Token (HNT).
It’s not all FUD though as we note Bitcoin is still up 33% YTD and Ether up over 260%…
Bitcoin’s “dominance” of the crypto space has fallen below 40% for the first time since June 2018, as Ethereum’s share has risen to just below 20% (its highest since Feb 2018)…
CoinTelegraph reports that inflows of Bitcoin to major centralized exchanges soared during the past 24 hours. More coins were sent to trading posts than at any time since the “Black Thursday” crash of 2020 — a fact that led Lex Moskovski, chief investment officer of Moskovski Capital, to conclude: “People are scared.”
22,917 #Bitcoin in a single hour were deposited to exchanges yesterday.
This hourly inflow is rivaled only by the March, 2020 crash.
People are scared. pic.twitter.com/uH4lBL6Onk
— Lex Moskovski (@mskvsk) May 18, 2021
With outflows from exchanges typically being inferred as indicating crypto assets are being moved into cold storage for security or DeFi protocols for yield generation, inflows are interpreted as assets being moved onto centralized platforms to be sold.
Additionally, CoinTelegraph notes that data from crypto data provider Glassnode shows that Bitcoin price drawdown has led to almost a quarter of unique on-chain entities being at a loss. This situation also bears some parallels to previous extreme downside price action periods that interrupted bullish advances.
Data also indicates roughly 35,000 Bitcoin worth more than $1.4 billion has been deposited on Binance in the past 48 hours.
Largest day of BTC inflows to Binance ever. pic.twitter.com/HG56s37mtv
— William Clemente III (@WClementeIII) May 18, 2021
“Feels like capitulation,” said Kraken growth lead Dan Held. Clemente replied: “Let’s see one final nasty liquidation wick.”
Finally, we note that Bitcoin has fallen below its ‘stock to flow’ fair value price…
Offering hope for some of a rebound back to $56,000 or more given the same magnitude drop in March 2020.
Wed, 05/19/2021 – 08:25