Crypto market update: $100bn wiped off as bitcoin nosedives
Bitcoin price retracement contributed to a $100bn loss for the crypto currencies market.
The crypto market was still declining on Friday, as uncertainty prevailed among investors trying to decide if they were seeing a temporary pullback by bitcoin or a more worrying long-term reversal.
A tumultous trading week for bitcoin (BTC) saw the leading cryptocurrency plummet in price, which contributed to around $100bn (£72bn) being wiped off the whole crytocurrency market.
At the time of writing, the lead crypto’s market cap amounted to $868.4bn, cdown from $971.4bn on 6 September 2020. The total crypto market capitalisation fell from $2.261trn to $2.089trn in the past seven days, dropping by around $40bn in the last 24 hours alone.
El Salvador’s Bitcoin Day troubles
The eyes of crypto investors have been firmly fixed on El Salvador since Tuesday (7 September), when the Central American country made history by becoming the first nation to adopt bitcoin as legal tender.
However, the event , dubbed Bitcoin Day , was marred by teething problems, including technological glitches and angry protests by sceptical Salvadorans, leading to the dramatic downturn in bitcoin’s value.
But analysts claim that the spiral will not influence the crypto market in the long term.
JP Morgan analysts said in a Market Insider report: “El Salvador’s ill-conceived experiment should not be critical for the future of bitcoin or cryptocurrencies. Crypto markets suffered from El Salvador’s glitches this week, but that was from a frothy backdrop.”
According to Currency.com, bitcoin’s price was almost stable today, trading at around $46,142 during the last 24 hours. Late morning, the largest cryptocurrency for market capitalisation was trading flat but was also down 7.7% on the last seven days. Meanwhile, the crypto’s trading volume was around 23% lower at $34.6bn.
The price of ether (ETH) fell to $3,391.87 today, following the same pattern.
This drop came after Ethereum's founder, Vitalik Buterin, recently entered the controversial debate on the crypto coin’s high fees. “We need to move NFTs onto the layer 2 ecosystem to cut fees. However, doing that right requires good cross-rollup portability standards, so the ecosystem can avoid getting locked into one particular L2,” he said on Twitter.
According to BitinfoCharts.com data, the average ETH transaction fee was around $32.50 today or 0.0096ETH. Since its London Hard Fork, the network has burned around $900m in ETH, with a net reduction of 54.6%.
Ether was trading down by 2.5% with a market capitalisation of $398.4bn. The cryptocurrency’s trading volume was around 25% lower at $21.2bn over the past 24 hours.
Profit-taking on Solana
Although Solana (SOL) was also trading down by 13% over the past 24 hours, SOL witnessed a 28% increase in its price in the last seven days, trading now at $138.38 with a market cap of $53.8. Its trading volume dropped by 40% in the same period to $9bn.
As for Cardano (ADA), the third crypto by market cap was trading down by 3.0% at $2.47, with a market cap of $79.1bn and a trading volume of $5.3bn, down by 28% in the past 24 hours.
Top gainers and losers
Elsewhere, the likes of Tezos (XTZ) and ICON (ICX) all witnessed rises of more than 20% in their price, with Tezos touching a 30% increase in the last 24 hours and trading at $6.04.
On the opposite side of the coin was Near Protocol (NEAR), down 13% at $9.41 after having gained 45% in the past seven days.