The cryptocurrency market cap shed $50 billion on Thursday as the result of a widespread market correction that forced a myriad of prominent coins into double-digit percentage declines.
Yesterday, the cryptocurrency market cap recovered back to $600 billion after last week’s severe correction, but today’s pullback dropped it well below that mark. At present, the combined value of all cryptocurrencies is $550 billion, which represents a single-day decline of more than eight percent.
The correction appears to be tied to a report that South Korea — one of the world’s largest cryptocurrency markets — is preparing to enforce a ban on anonymous cryptocurrency trading in an attempt to cool off the markets and prevent money laundering. Korean regulators have also prepared a list of new regulations targeted specifically at bitcoin exchanges based in the country. While some analysts believe South Korea’s increased oversight of cryptocurrency markets as a bullish signal in the long-term, it will inevitably lead to short-term volatility.
Against this backdrop, the bitcoin price led a widespread cryptocurrency retreat, plunging as low as $13,145 on Bitfinex after recovering as high as $16,500 earlier in the week. At present, the bitcoin price is trading at $13,667, an 11 percent pullback from its Wednesday level. Bitcoin now has a market cap of about $229 billion.
The ethereum price posted a similar performance, dropping about 10 percent on Bitfinex to reduce its price to $673. Ethereum’s market cap is now worth roughly $65 billion, a nearly $20 billion decrease from the all-time high it set earlier this month.
As usually happens, the downturn hit the altcoin markets hard, and the total altcoin market cap dropped by $23 billion. Altogether, nine of the top 10 cryptocurrencies experienced double-digit percentage price decreases for the day, although there was one notable exception.
Amidst a sea of red, the ripple price managed to make a slight advance, rising about one percent to $1.13 on Bitfinex. Ripple’s global average was much-higher due to intense demand from Korean traders, enabling the ripple price to hit an all-time high before pulling back to its present level. At the time of writing, ripple had a market cap of $44 billion, enabling it to slip past a plunging bitcoin cash.
Now ranked fourth, the bitcoin cash price endured a 16 percent blow that forced its market cap below the $40 billion mark. At present, bitcoin cash is priced at just $2,364.
The litecoin price declined by 13 percent to $242, while the IOTA’s 18 percent correction was the worst among top 10 cryptocurrencies.
The dash price fell by 15 percent, placing it just six dollars above the $1,000 mark, and EOS dropped by more than 16 percent to $7.67. NEM and monero each saw their prices decline by about 12 percent, rounding out the top 10.
Write to Josiah Wilmoth at josiah.wilmoth(at)CCN.com.
Featured image from Shutterstock.
Last modified: March 4, 2021 5:03 PM