Entering into August, the crypto market faces a turbulent period, witnessing a significant decline in market valuation. The market, once thriving and buoyant back in July, now sees a collective valuation of $2.07 trillion. In this article, we will explore the recent decline, how Bitcoin was affected, and some altcoins experiencing the dip.
Crypto Market Cap Declines to $2.07 Trillion
The overall crypto market capitalization has taken a hit, declining to $2.07 trillion. This figure represents a sharp decrease from the previous month’s peak of $2.4 trillion. The downturn began in mid-July and accelerated as we entered August, with daily trading volumes also seeing a reduction of 40% in the last 30 days. Moreover, data from CoinMarketCap shows it dropped to an average of $120 billion compared to its highest of $160 billion back in May.
Bitcoin, the leading cryptocurrency by market cap, has seen its dominance increase slightly from 54.3% to 55.98%, as altcoins also experience significant losses. Ethereum’s market share has similarly decreased from 16. 69% to 15.73%, contributing to the overall decline in market valuation. Additionally, major stablecoins like USDT and USDC have maintained their market caps, indicating that investors are seeking refuge in less volatile assets during this downturn.
Bitcoin Declines to Less Than $60k
Bitcoin, often regarded as the apex cryptocurrency, experienced a considerable price drop, getting to as low as $55.6k in the past 24 hours. BTC went from moving around $70k on July 29th to plummeting below $56k at the time of writing. As of August 5th, Bitcoin is trading at approximately $55.7k, an 18% decline over the past seven days.
Trading volumes for Bitcoin have also seen a dip, decreasing by 12% from an average of $40 billion to $35 billion daily. This decline has raised concerns among investors, as Bitcoin’s price movements typically influence the broader market sentiment. The market valuation also went from $1.3 trillion km July 29th to around $1.1 trillion on July 5th.
Crypto Market Decline: Altcoins Dips Massively
The altcoin market has not been spared from the downturn, with several major cryptocurrencies experiencing substantial declines. Ethereum (ETH), the second-largest cryptocurrency by market cap, has fallen from $3.3k to $2.6k, marking a 20% decrease in the last week. Similarly, Binance Coin (BNB) has dropped from $592 to $489, an almost 17% decline.
Other notable altcoins such as Cardano (ADA) and Solana (SOL) have also seen significant drops. ADA fell from $0.4 to $0.31, representing a 16% decline, while SOL decreased by more than 27%, from $191 to $137. The collective market cap of altcoins has shrunk by over 10%, from $1.2 trillion to $990 billion, highlighting the widespread impact of the market downturn.
Conclusion
The cryptocurrency market’s entry into August is marked by a notable decline in valuation, with Bitcoin and altcoins suffering substantial losses. Regulatory pressures, macroeconomic factors, and security concerns are all playing a role in this downturn. Investors are now closely monitoring the market for signs of stabilization or further declines in the coming weeks. However, only time will tell if August will be a bullish or bearish month.
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The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
