Crypto Markets Tank Again as Selloff Accelerates

Crypto-asset markets are in deep decline for the fifth day in a row as the massive sell-off that has sent billions of dollars out of space continues.

Total market capitalization dropped another 3% in the early hours of January 7 after another serious sell-off. The market capitalization is now just over $2 trillion, which is a drop of nearly 32% from an all-time high of $3 trillion in early November 2020.

This move resulted in another $110 billion out of space. Since the beginning of this week, the cryptocurrency market has shrunk by more than $320 billion, or 13.5%.

Industry analyst Colin Wu has hung Liquidations of derivative contracts that have occurred within the past hour or so;

Contract liquidations in the past half hour have reached $102 million, of which $40 million is in Bitcoin and $42 million is in ETH.

Major cryptocurrencies are in pain

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

Over the past seven days, assets are down 11.5% and down 17.5% over the past month. Bitcoin has now lost 39% since its all-time high on November 10 and is only up 13% from the same period last year. A 40% retracement isn’t unusual, so it’s too early to call it a bear market just yet.

Ethereum is in even greater pain with a massive 6.8% dump since the same time yesterday. ETH price dropped to a three-month low of $3,130 before marginally recovering back to $3,230 at press time.

All high-cap crypto assets are deep in the red right now with massive losses for Solana (SOL) sinking 6.7% below $140 and Terra (LUNA) 8% down to $70. Binance Coin (BNB), Polkadot (DOT) and Avalanche (AVAX) are also hurting with 4-6% slides exacerbated by a week of declines.

Any survivors?

A couple of cryptocurrencies that are challenging today’s landfill include Safemoon which is up 40% making it a top 100 performer.

Decentraland’s MANA is also doing well with a gain of 12.4% trading at $3.22, while Quant (QNT) and Cosmos (ATOM) are gaining around 12% each.


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