Bitcoin’s Fall to US$10k will Dictate the Demise of the Crypto Market

No doubt the crypto market is volatile but with Bitcoin's drop the crypto market can be dead

The global crypto market cap has shrunk to US$1.54 trillion, decreasing by 2.28% in the last 24 hours, according to CoinMarketCap data on Monday (11.26 pm). Almost every crypto price in the top 10 has decreased in the last 24 hours while the global cryptocurrency market volume, over the last 24 hours increased by 3.18% to US$96.96 billion. The total volume in Defi was US$11.39 billion, which is 11.39% of the total crypto market 24-hour volume. Stable coins volume was US$87.56 billion, which is 90.3% of the total crypto market 24-hour volume.

Bitcoin was more than 55% down since its all-time high of US$69,000 in November last year.

Other digital coins also suffered double-digit-percentage drops, led by Cardano (20%), Solana (16%), XRP (13%), BNB (16%), and Ethereum (10%), Decrypt reported. The cryptocurrency crashed below US$33,000 on Monday morning for the first time since July 2021, according to CoinMarketCap's price index, marking the latest in a severe capitulation from its price peak in November. The price drop comes amid a broader crypto market collapse, which has seen nearly US$300 billion wiped from the value of cryptocurrencies over the last four days.

Bitcoin's demise marks one of its worst price slumps in recent years, with analysts warning it could form part of a longer-term bear market if it does not bottom out soon. Bitcoin slid through a key support level during the weekend to almost a four-month low, its lowest since January and a decline of more than 25% year to date (YTD). The world's largest and most popular cryptocurrency has largely followed the negative trend in equity markets as investors across asset classes respond to signals of further interest rate rises.

There have been several instances where Bitcoin soared more, giving investors the hope of reviving their investments. After the Biden administration released the executive orders that encourage making a framework to adopt digital assets, the Bitcoin price spiked. The government is also reportedly examining the major opportunities that major cryptocurrencies like Bitcoin have to offer. While this step welcomed those who believe that they can benefit from the greater regulatory conditions, several others sold off their Bitcoin holdings, leading to a major crypto crash. Besides this, the framework designed to control inflation harmed the price of BTC. High-risk value assets tend to decline severely when there are any policy changes.

Bitcoin began to descend at the end of last week and continued to fall throughout the weekend, trading between a relative range of US$33,000 and US$37,000. Bitcoin's big drop Monday is just the latest reminder for investors that crypto assets come with extra risk and volatility. So, with no doubt, if Bitcoin falls to US$10k the crypto market will be dead.

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