Sunday Crypto Bloodbath Wiped Out $11 Billion from the Market in Minutes

cryptocurrency

After a week of minor gains, Bitcoin (BTC) and the wider crypto market fell sharply on Sunday. On February 24, after an impressive yet brief rally that lasted between February 21 through February 23, the market valuation of the entire crypto market plunged by a whopping $11 billion. When trade began, it stood at $141 billion, and at the close of trade, it dropped to $130 billion.

Bitcoin (BTC) Price Today – BTC / USD

NamePrice24H %
bitcoin
Bitcoin(BTC)
$55,074.00
0.710%

Crypto analysts have insinuated that Bitcoin’s inability to break out from the crucial $4,200 level, made most of the major crypto assets to retrace.

Simple Technical Pattern in the Crypto Market

Last week, Alex Krüger an economist explained that while the crypto charts show indications of a bottom for the leading digital currency at $3,122, the market interest is minimal because of its relatively low volume.

Until the asset breaks beyond the crucial resistance level of $4,200, the analyst said Bitcoin (BTC) remains vulnerable and could still drop to the $3,000 position.

Anticipation of the Approaching Ethereum (ETH) Upgrade Resulted in its Price Jumping by 60%

Previously, CCN had reported that Ethereum’s (ETH) price has increased by at least 60% since the early part of February 2019 in anticipation of the Ethereum Constantinople hard fork or upgrade.

The hard fork to the Ethereum (ETH) Blockchain which includes a basic update on the Ethereum network as a result of the drop in block rewards, was initially supposed to be activated in January 2019. However, due to other issues within the network, the upgrade was delayed for a second time.

In the crypto sector, investors typically dump their holdings just before the materialization of an update, product launch, or event. A similar scenario could play out following Ethereum’s Constantinople hard fork which is scheduled to go live tomorrow.

In the long run, Constantinople and the block reward decline are bullish fundamental factors for the Ethereum (ETH) price as they typically cut down the potential circulating supply of the asset class. In the short-term, because of the behavior of a vast number of investors in the cryptocurrency space, it could have negative effects on the price pattern of the digital asset.

Still, after the abrupt 9.5% decline in the Bitcoin (BTC) price from $4,190 to $3,795, the fundamentals of BTC and most of the major crypto assets are standing strong.

Although the magnitude of this sudden drop in Bitcoin’s price surprised most investors, Bitcoin (BTC) clearly broke away from the $4,000 resistance position, which it has struggled to overcome for many months now.

What Does Bitcoin’s Predicament Mean for the Rest of the Market?

Bitcoin (BTC) was almost breaching the $4,200 resistance position, a position that traders had previously emphasized could take the asset class to $5,000 or $6,000 in coming months.

While the smaller digital assets and tokens look like they will experience intensified price positions when the price of the Bitcoin (BTC) surges forward, history has shown that it also tends to retract by a large margin in the event that the price of the dominant crypto token drops.

In the last 30 minutes alone, digital tokens recorded losses between 10% to 26% against the USD as BTC retraced a whopping 9% in the last 24 hours.

Brian Lubin is a Crypto News Reporter for Smartereum. He's well-known for his reports on the crypto markets.

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