The cryptocurrency market took another downward turn on Tuesday, driving the ethereum price below $500 and the bitcoin price one step closer to its year-to-date low.
The majority of large cryptocurrencies had entered the day on a slight upswing, enabling them to regain a small amount of the ground that they lost when “Bloody Sunday” wiped $40 billion off the cryptocurrency market cap. However, the market was unable to sustain this brief recovery, and by Tuesday at 10:00 UTC most coins began to decline against the dollar.
The pullback forced the ethereum price below the psychologically-significant $500 mark, and by 19:43 UTC ETH was trading at just $488 on Bitfinex — representing a 24-hour decline of five percent — and had seen its market cap drop below $50 billion.
The bitcoin price fared slightly better, though it still endured a three percent decline that placed it within $500 of its year-to-date low. At present, bitcoin is struggling to hold above the $6,500 mark and has a market cap of approximately $112.2. billion.
The precise trigger for the decline is not immediately clear, though it may stem from the fact that bullish predictions about institutional investors entering the markets have failed to materialize into actual investments even as interest among retail investors has continued to wane over the course of the year.
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Last modified: March 4, 2021 5:08 PM