Total Crypto Market Cap Falls Below $1 Trillion For The First Time Since February 2021

Summary:

  • Crypto tokens continue to bleed as market uncertainty persists.
  • Market leaders Bitcoin and Ethereum dipped over 15% on Monday.
  • BTC is down more than 6% in the last 24 hours and trades below $23,000.
  • Technical analyst MagicPoopCannon predicted a leg down for BTC to the $20K or $22K level. 

Another difficult week for the world of virtual assets as the total cryptocurrency market cap slipped below $1 trillion on Tuesday. Data from on-chain aggregator CoinMarketCap showed that the total cash currently circulating across crypto tokens sits under $950 billion at press time. 

The last time crypto’s market cap reached these levels was around 16 months ago, back in February 2021.

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Total Crypto Market Cap (Source: CoinMarketCap)

Crypto Leaders Bitcoin And Ethereum Dip To Levels Not Seen Since 2022/2021

Crypto’s leading token Bitcoin took a huge hit on Monday amid a general market slump. BTC dropped by almost 20% in a single day, going as low as $21,800 on some exchanges. The top crypto token is also down on Tuesday by over 7% and trades around $21,900 at press time.

As EWN previously reported in May, technical analyst MagicPoopCannon (MPC) predicted a leg down to these levels. MPC cited macro support indicators around the $20,000 to $22,000 regions as the basis for their price prediction.

#BTC is falling below the 61.8% moving average of the entire bull market, in what may be the beginning of the next major leg lower. I do see a technical case for a rapid decline to $22,000 or $20,000, before new support is found, if a leg down gains steam. pic.twitter.com/1Q5Zm8krZz

— MAGIC (@MagicPoopCannon) May 26, 2022

Bitcoin’s plunge below $24,000 also broke through the supposed realized price level highlighted by Dylan LeClair, Head of Market Research at Bitcoin Magazine. The last time BTC dipped as far as $21K was back in December 2020, almost 2 years ago.

Notably, LeClair pointed out that hitting these low levels could indicate that a bottom is in or close. 

Here is a standardized ratio between market price and realized price (market value to realized value – MVRV).

24k would be in the green zone.

Again, dips to/below realized price have historically signaled a capitulation style bear market bottom is in (or close).

[2/3] pic.twitter.com/8EizHYPBi3

— Dylan LeClair 🟠 (@DylanLeClair_) May 9, 2022

Similarly, the leading altcoin Ethereum also slumped significantly below $1200 despite anticipation surrounding The Merge. ETH currently exchanges hands at $1,194 after a slight recovery since Monday’s 15% dip. Ethereum dropped as low as $1,080 for the first time since January 2021. Per data from TradingView. 

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ETH Daily Chart (Source: TradingView)

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