It’s another day in the red for the cryptocurrency markets, as 97 of the top 100 cryptocurrencies have posted 24-hour declines against the US dollar. The Bitcoin price headlined the retreat by declining to an 80-day low, and other top coins fared equally as poorly.
The total value of all publicly traded cryptocurrencies hit a combined $366 billion today, the lowest figure observed for the market since Dec. 4, data from CoinMarketCap reveals.
The more than 60-day low, however, can also be read more bearishly, as it represents a 50 percent drop from the market’s all-time high above $830 billion in early January.
Indeed, for the second time in just four days, the market is awash with double-digit declines, as in just a few short weeks a combination of new buyer fatigue and negative news appears to have taken its toll.
This time, the culprit may be speculation that new buyers may be further discouraged due to reports China could further restrict domestic buyers from overseas market resources, while major credit card issuers across the globe are reportedly restricting access to cryptocurrency buying.
Still, year-over-year, the figures are less bleak, as the market is up more than 1,800 percent from just $19 billion in Feb. 2017.
The downturn reduced the Bitcoin price by another 12 percent, bringing the most prominent cryptocurrency to an 80-day low. At present, the Bitcoin price is valued at just $7,660, which translates into a $130 billion market cap.
Some investors believed that the market downturn would present Ethereum with the opportunity to finally achieve the “flippening” by surpassing Bitcoin’s market cap and becoming the largest cryptocurrency. However, this has not proved to be the case, as the Ethereum price has largely tracked with Bitcoin’s decline.
On Monday, the Ethereum price sunk below the $800 mark and was trading at $772 on Bitfinex at the time of writing. This represents a single-day decline of 13 percent and leaves Ethereum with a $75.8 billion market cap.
On the whole, altcoins declined to a greater degree than Bitcoin, demonstrating that diversifying into altcoins will not necessarily provide investors with a hedge against major market declines.