Bitcoin’s recent losses also see its market cap fall by US$140 billion
After Bitcoin closed in the red again yesterday, the cryptocurrency’s market capitalisation has slipped back below 1 trillion. US dollars.
With the third major downturn during the current Crypto Engine record run, the Bitcoin price has now lost 12.5% again from the new record high of 13 March, which was US$60,100.
According to CoinGecko, this leaves Bitcoin’s market capitalisation at just US$980 billion, a drop of US$140 billion in the last seven days.
This regression comes just days after crypto expert Willy Woo had predicted that it would not go back below the psychologically important hurdle:
„The 1 trillion. US dollar is strongly supported by investors. I think it is likely that Bitcoin will not slip below US$1 trillion again.“
The important sound barrier was first cracked on 19 February, but it went back below 1 trillion after just four days. Then, on 9 March, the three-digit range was reached again, where the crypto market leader managed to stay until yesterday.
Meanwhile, the total market capitalisation of all cryptocurrencies amounts to 1.65 trillion US dollars.
But here, too, a loss of 9.8 % has been recorded since 22 March
A decisive reason for this development is presumably that more and more investors are booking out partial profits from the record run. This thesis is also confirmed by analyst Josh Rager, who points out that profits are only realised when they have been booked out.
In doing so, he alludes to MicroStrategy CEO Michael Saylor, whose firm is now one of Bitcoin’s major investors and is therefore seen as a figurehead for long-term holding:
„Don’t pretend Saylor won’t book profits. Because he will sooner or later, just like any other investment fund. They sell and get back in at the lower price.“
As we had reported, there are a number of indicators that suggest the downturn could continue. In this context, crypto market research firm Glassnode cites a risk assessment metric that maps how long-term optimistic investors are relative to the current price. It turns out that investor sentiment is currently similar to the second half of a long-term bull run. The upward trend could therefore be coming to an end.