On Friday, fears of a wider market correction have increased as traders dump altcoins in large quantities. The dumping follows another minor pullback for Bitcoin. During the Asian trading session, crypto markets are sliding with the exception of Cosmos. BTC had rushed past the $9,000 mark hours ago but then came tumbling down.
The cumulative market capitalization for the entire crypto market in circulation dropped considerably. In what appeared to be a major trading bot triggered event, prices dropped over $1,000 in a matter of hours for Bitcoin. The largest crypto settled just above the $8,000 handle. The average daily trading volume is currently hovering around $101.2 billion for the last 24 hours.
Even though reports may show that the fundamentals are still strong, the institutional investors are yet to gather momentum to join the nascent market. Thus, the latest drop can be considered to be just but a minor blip that will not stop the bulls from taking over in the near term. The patterns are nothing strange and they usually happen many times in the volatile world of the crypto markets.
It is a Bloodbath in the Altcoin World
As expected, when bitcoin tumbled, the entire altcoin market dumped even harder. Bitcoin has recovered a bit and is currently down 4.85% according to Coinmarketcap.com. The same is not applicable for the rest of the tokens as the avalanche continues. Ethereum has dumped over 9.8% back to the $255 level.
After the recent gains, Ethereum was expected to experience correction and this drop shows how extensively tied to bitcoin it is. If it is the start of an expected 30% correction, Ethereum might drop below $200 soon.
XRP is also suffering losing 8.7% back to $0.4212. EOS also dropped over 8% back to $7.43 and even a Coinbase listing could not save it from drowning. However, hopes are that the weekend B1 event and many high profile announcements can keep the upside momentum going.
Bitcoin SV slumped almost 20% after reports of its scam induced pump the day before dropping back to $185. TRON, Cardano, Tezos, and IOTA are in double-digit losses. On the contrary, Cosmos is surging over 4% while the rest of the market is going down.
The Friday correction saw over $25 billion exit the market as the total market capitalization fell from a new ten-month high of $286 billion. Currently, it is hovering at around $262 billion.
Even though the daily volume surged over $100 billion, most of it is flowing outwards. For now, the markets seem to be consolidating and licking wounds. But, further losses could arise in the case that the 30% correction theory is accurate.