Major cryptocurrencies plunged Tuesday morning, with bitcoin cracking more than 8% to fall below the $ 53,000 level. The largest cryptocurrency by market cap was trading at $ 51,236 around 9:05 p.m., according to data available with WazirX. Bitcoin hit an all-time high of $ 58,332.36 last week.
Currently, bitcoin has a market cap of $ 975 billion. By February 19, it had become the world‘s first digital currency to reach a market valuation of $ 1 trillion after breaking through the $ 53,683 level. It took less than two months to hit that mark from the $ 25,000 price point by the end of December 2020.
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Sathvik Vishwanath, co-founder and CEO of Unocoin, said in the first part of last week that the price started to be very bullish and that for the first time in history the total market cap of bitcoin had crossed $ 1 trillion. This news was fueled by several companies that took exposure to bitcoin. Fear of Missing Out (FOMO) probably also played a role.
“The start of the new week, however, has been favorable for new investors as the market has seen a drop of around 5-7% in prices. It’s not yet big enough to call it a correction and the week ahead. coming would be interesting as it would be… testing the resilience of the insane market growth over the past few weeks, ”Vishwanath said.
Ethereum at $ 1,672.98, was down more than 11%. Other major cryptocurrencies such as stellar were also trading in the red.
Currently, Bitcoin’s $ 975 billion market cap is more valuable than Tesla and Facebook. Industry experts believe bitcoin’s price movement is fueled by demand from retail and institutional investors.