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Massive Bitcoin (BTC) Dump Leads to Overall Crypto Market Correction, $100 Billion Eroded

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by Bhushan Akolkar · 3 min read
Massive Bitcoin (BTC) Dump Leads to Overall Crypto Market Correction, $100 Billion Eroded
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Bitcoin (BTC) tanked more than 10% in one of the sharpest drops so far in 2021. The world’s largest cryptocurrency has shaken the market sentiment following which the overall crypto market lost 10% valuations.

The world’s largest cryptocurrency Bitcoin (BTC) tanked more than 12% earlier today slipping below $30,000. Although it has retraced partially, Bitcoin (BTC) is still down 11.38% and trading at $30,802 at press time. The continuous correction of Bitcoin price over the last week has eroded $150 billion worth of investors’ wealth.

Since January 10, when Bitcoin surged past $41,500 levels, the cryptocurrency has lost more than 25% of its value so far. Speaking to CNBC, Michael Sonnenshein, CEO of Grayscale Investments said:

“Corrections are a natural part of any market and are especially natural in the bitcoin ecosystem. From 2016-2017, we experienced 6 corrections of approximately 30% or more on the way to new highs.”

Amid the recent correction, Grayscale has been on a massive Bitcoin buying spree. The digital asset manager has acquired more than $1 billion of BTC just in the last 7 days. Sonnenshein said that Grayscale has a continuous flurry of demand from institutional players.

Anthony Scaramucci, the founder of SkyBridge Capital, has an interesting take on Bitcoin. Scaramucci who is also a former White House director compares Bitcoin to Amazon.com Inc (NASDAQ: AMZN) in its early days. He said:

“I think you’ve got to accept there’s a tremendous amount of volatility in bitcoin, and it’s still very early stages. If you look at Amazon in the first 3 years, you saw 50% drops in price. Bitcoin’s moves are akin to that because you’ve got close holders of bitcoin that are releasing bitcoin to the marketplace and the buying stability is shoring up. But it’s still not 100% there.”

Last month, SkyBridge Capital launched its Bitcoin-focused fund in the market. The company has already invested more than $180 million into BTC so far.

Overall Cryptocurrency Market Loses $100B amid Bitcoin Correction

Following, Bitcoin strong correction, the overall cryptocurrency market valuations are down by 10%. As a result, the overall crypto market has lost $100 billion in a single day. In line with Bitcoin (BTC), the world’s second-largest cryptocurrency Ethereum (ETH) has also corrected 12.65% and trading at $1149.

Similarly, other top-ten altcoins have also tanked 5-10% at press time. The recent market correction hasn’t deterred Bitcoin enthusiasts and supporters. Bitcoin (BTC) evangelist Max Keiser said:

“Buy these cheap sats y’all. I’m stackin hard!”

Author of stock-to-flow model PlanB says that corrections are part of the game and his “S2F model is right on track”. PlanB has already given a $100K target for BTC price a long time back.

The latest crypto market correction comes a day after the US Treasury Secretary Janet Yellen slammed cryptocurrencies. Yellen said that digital currencies are means to promote illicit financing. She added the government would “need to examine ways in which we can curtail their use and make sure that money laundering doesn’t occur through those channels.”

Is the market able to move higher and achieve new peaks in the nearest future? The time will show.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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