Crypto Markets Tank Again as Selloff Accelerates

Updated by Kyle Baird
In Brief
  • Crypto markets dump another 3% on the day.
  • More than $300 billion has exited the space this week.
  • Only a handful of altcoins are surviving the selloff.
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Crypto asset markets are deep in the red for the fifth day in a row as the massive selloff continues resulting in billions of dollars exiting the space.

Total market capitalization has declined by a further 3% in the early hours of Jan 7 after another bout of serious selling. The market cap is now a little over $2 trillion which marks a fall of around 32% from its $3 trillion all-time high in early November 2020.

The move has resulted in a further $110 billion exiting the space. Since the beginning of this week, crypto markets have shrunk by more than $320 billion, or 13.5%.

Industry analyst Colin Wu has commented on the derivatives contract liquidations that have occurred over the past hour or so;

The contract liquidation in the past half hour reached $102 million, of which $40 million in BTC and $42 million in ETH.

Crypto majors in pain

Bitcoin is leading the retreat as usual with a loss of 3.2% over the past 24 hours according to CoinGecko. BTC dumped to $40,685 before recovering slightly to $41,810 at the time of press.

Over the past seven days, the asset has shed 11.5% and it is down 17.5% over the past month. Bitcoin has now lost 39% since its Nov. 10 all-time high and is up just 13% since the same time last year. A 40% correction is not unusual so it’s too early to call it a bear market just yet.

Ethereum is in more pain with a massive dump of 6.8% since the same time yesterday. ETH prices fell to a three-month low of $3,130 before a marginal recovery back to $3,230 at the time of press.

All high-cap crypto assets are deep in the red at the moment with major losses for Solana (SOL) dumping 6.7% to below $140 and Terra (LUNA) dropping 8% in a fall to $70. Binance Coin (BNB), Polkadot (DOT), and Avalanche (AVAX) are all hurting too with 4-6% slides compounding a week of declines.

Any survivors?

There are a couple of altcoins defying the dump today and they include Safemoon which has spiked 40% making it the top-100’s top performer.

Decentraland’s MANA is also doing well with a 12.4% gain to trade at $3.22, while Quant (QNT) and Cosmos (ATOM) have gained around 12% each.

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