ETH Struggling At $2,000, BTC Slides to $33K – Trading Volumes Plunge
The bears made a move in cryptocurrency market as bitcoin dropped below $33,000, while ether dumped beneath $2,000 for the first time in over two weeks.
After failing to reach $35,000, bitcoin has been declining and lost around $2,000 of value in a day. Most altcoins have followed the trend with serious declines, including ETH, which even dipped below $2,000 for the first time since late June.
BTC Below $33K
Despite the minimal trading volume during the weekend, bitcoin actually added some value. The cryptocurrency went from about $33,000 to $34,000 on Sunday and kept going north yesterday.
This culminated in a daily high of just under $34,800. However, at this point, the bears stepped in and prevented any further advances.
Following that BTC started declining in value and lost more than $2,000. As a result, it dropped to a low of around $32,600 (on Bitstamp).
Bitcoin has bounced off and reclaimed $33,000, but it’s still more than 3% down on a 24-hour scale. Its market cap is back to $620 billion, while the dominance over the altcoins has increased slightly since yesterday to 45.5%.
BTC Trading Volume Plunges To Lowest Since December 2020
According to an Arcane Research report, the Bitcoin trading volume has seen a new daily low this weekend. The indicator had already plunged a week ago, but activity on exchanges has fallen even further now.
Below is a chart showing how the BTC daily trading volume has changed since June of last year:
As is clear from the chart, the 7-day average BTC daily trading volume has dipped to a new low for the year at about $2.2 billion.
A notable feature of the graph is that the value of the indicator right now is the same as what it was on 14 December 2020. The 2021 bull run started soon after this date where Bitcoin broke its all time high (ATH) from back in 2017.
The BTC market volatility is also down to the lowest it has been in the year 2021 so far, likely caused by the stagnation in the price of the cryptocurrency.
Incidentally, the summer of 2020 also saw low activity on top Bitcoin spot exchanges and low market volatility. This summer might turn out to be similar.
As it typically happens when Bitcoin suddenly drops, so have the alternative coins. Ethereum is a prime example as it nosedived from $2,150 to $1,980 in a day. As such, the second-largest crypto broke below $2,000 for the first time in over two weeks.
Binance Coin, which recently went as high as $340, also fell hard as it dropped to just over $300.
Uniswap has lost the most from the top ten as a 8% drop has driven it below $20. Cardano (-3.5%), Ripple (-2.5%), Dogecoin (-5.5%), Polkadot (-6%), Bitcoin Cash (-4.5%), Litecoin (-4.5%), Solana (-5%), and Chainlink (-5%) are also deep in the red.
The situation with the lower- and mid-cap alts is quite similar. KuCoin Token leads the adverse trend with a 14% slump, followed by Telcoin (-13%), Mdex (-11%), THETA (-11%), ICP (-10%), and SushiSwap (-9%).
Although Axie Infinity and Revain have charted impressive gains since yesterday, the cumulative market cap of all digital assets has dropped by $60 billion in a day to well below $1.4 trillion.
