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Another $25 Billion Wiped Out: Crypto Market Suffers From Large Sell-Off

Last Updated March 4, 2021 3:11 PM
Joseph Young
Last Updated March 4, 2021 3:11 PM

Over the past 24 hours, another $25 billion has been wiped out of the crypto market as major digital assets fell sharply in value.

Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Stellar (XLM) recorded a loss of 14 percent, 14.5 percent, 45 percent, and 10 percent respectively, demonstrating a large decline in both volume and momentum.

Bitcoin Cash Dropping More Than Any Asset

As expected, Bitcoin Cash SV, a hard forked cryptocurrency created by the Craig Wright, Coingeek, and Calvin Ayre camp, fell from $170 to $60 within a three-day span. As SV fell, the combined value of SV and Bitcoin Cash (ABC) fell from around $450 to $270, by nearly half.

Due to the contentious hard fork and the hash power battle between SV and BCH on November 15, the price of BCH dropped from $450 to $270, with BCHABC suffering significantly from the conflict. As Roger Ver, a renowned cryptocurrency investor and Bitcoin.com CEO said, “no one wins a war. Some just lose less than others.”

Based on current market conditions and the intensity of the drop over the last 24 to 48 hours, Bitcoin Cash and other major cryptocurrencies are expected to drop further in price, with BCHABC eyeing a test of $180 for the first time in its 15-month history.

Other large market cap digital assets like Monero (XMR), Tron (TRX), Dash (DASH), IOTA (IOTA), and Binance Coin (BNB) have recorded an average daily drop of around 16 percent.

The steep decline in the price of BNB is especially surprising in consideration of the fact that BNB remains the best performing cryptocurrency in all of 2018 ahead of Bitcoin.

From its all-time high, Binance Coin is down about 74 percent. In contrast, Bitcoin is down 76.5 percent and Ethereum is down 87 percent.

Both BNB and Bitcoin have shown a relatively high level of stability throughout the past several months, especially from July to November.

However, Ethereum, possibly due to the large amount of ETH still held by initial coin offering (ICO) startups as former Diar chief editor Larry Cermak reported , could continue to fall below major support levels in the weeks to come.

“On average, all of these projects have moved or liquidated 62% of the amount that they initially raised. In other words, they are still holding 38% of the initially raised amounts. Obviously, a lot of the ICO companies will continue selling ETH to cover operating expenses and to fund their businesses. It’s important to realize that the majority of these projects isn’t generating any revenue. And most likely never will.”

Ethereum is in the Worst Position Out of All Major Cryptocurrencies

ETH is approaching $130 with yet another 15 percent drop in value, suggesting that millions of dollars worth of ETH are being dumped on public cryptocurrency exchanges either by ICO project operators to fund operations or by individual ETH investors.

As sell pressure on ETH intensifies in the days to come, ETH could suffer a test of the $100 mark for the first time since mid-2017.

Featured Image from Shutterstock. Charts from TradingView .