- Total crypto market valuation falls below $2 trillion due to rapid declines.
- BTC loses $130 billion in a day, dragging down the entire market.
- Mt. Gox repayments, German government actions, and Bitcoin ETFs will shape the market.
The cryptocurrency market faced a rapid and substantial collapse at the start of this month. This resulted from the uncertainty surrounding Bitcoin (BTC). Approximately $130 billion evaporated from the market capitalization within a single day. Another wipeout of nearly the same magnitude followed within just 60 minutes.
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These two events pushed the total crypto market cap below $2 trillion for the first time since late February. The combined valuation of all cryptocurrencies stood at $1.96 trillion as of July 5. The total crypto market cap (excluding BTC) also plummeted by around $150 billion. From $1.03 trillion on July 1 to $880 billion at press time.
Hope Amidst the Decline
There’s a glimmer of hope despite the gloomy situation. The crypto market cap is rising after falling to $1.93 trillion. However, this figure is significantly lower than the yearly high and June’s high. Currently, Bitcoin is struggling to reach $55,000, which could signal a potential recovery.
Several factors will influence the market’s trajectory in the coming days. Firstly, the pace of Mt. Gox’s repayments and the willingness of creditors to offload their long-awaited BTC holdings will play a crucial role.
Additionally, the German government’s actions regarding Bitcoin holdings may impact market sentiment. Expert Peter Schiff believes that Bitcoin exchange-traded fund (ETF) buyers may incur significant losses.
He predicts that when Bitcoin trades below $38,000, all Bitcoin ETF buyers will be in the red. Meanwhile, BTC is trading at $54,839 having list 4.11% in the past 24 hours.
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