Bitcoin (BTC) Market Cap Plunges beneath $800 Billion

Wednesday’s bearish moves saw Bitcoin touching the $39,700 low before moving. That comes after negative market sentiment following looming fears about Evergrande’s crisis.

Bitcoin displayed accelerate correction on Wednesday’s Asian session after the flagship cryptocurrency plunged beneath $40K, the levels it has not touched since August 6. With such price trends, BTC’s market cap dropped beneath $800 billion (Coinmarketcap data). However, the crypto’s market dominance increased in the past day as alternative tokens suffered massive losses.

Negative market sentiment contributed to the current Bitcoin dip. Recent data by a crypto analytic firm Santiment indicated that ‘buying dip’ activities by Bitcoin investors dropped significantly during this BTC correction. The firm highlighted that Holdlers and Traders remain on speculative attitude. That is due to the downtrends experienced in the market. That resulted in a fearful buy dip attitude by enthusiasts. Remember, magnified FUD levels appear less risky for individuals adding Bitcoin and alts to their portfolios.

The total Bitcoin market capitalization lost nearly $100 billion over the past seven days. Early on the week, Finance Magnates declared increased liquidation on long BTC positions. That was due to the massive loss seen by Bitcoin. The global cryptocurrency liquidations jumped considerably over the past 24 hours. The market witnessed long positions’ liquidation worth nearly $470 million. During the period, bitcoin saw its long positions worth approximately $200 million liquidated.

Glassnode co-founders Jan and Yann commented on the latest long positions liquidation and correction in the Bitcoin market. They stated that BTC liquidation dominance increased past 65% in the current sell-off. That is high than the plummets early this month, indicating most leverage investors attempted to ‘catch a falling knife.

Meanwhile, the recent crash had the total crypto capitalization dropping around $250 billion over the past four days. While writing this content, the global cryptocurrency market capitalization hovers at $1.8 trillion. For now, Bitcoin trades at $42,455 after losing 1.75% within 24 hours. For now, BTC awaits the correct sentiment to reverse its underperformances.

What elements do you think will take the leading crypto higher? You can share your opinions below.

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