The cryptocurrency markets have been especially volatile during the past 24 hours. The price of Bitcoin briefly touched an intra-year high of over $9,000 before collapsing back down to a daily low of $8,173. All in all, this made the total crypto market cap fall around $20 billion in a matter of hours.
Crypto market cap fell $30 billion in hours
Specifically, it would appear that Bitcoin’s sudden surge to a new 2019 high of more than $9,000 triggered a series of sell orders. This caused the Bitcoin price to backfire heavily and sent it crashing towards low $8,000 levels.
Moreover, this effect likely rippled over to the rest of the cryptocurrency market. As such, the total crypto market cap fell from approximately $287 billion to $257 billion in less than 12 hours. Although the cryptocurrency market has since rebounded somewhat, the effect of this flash crash is still noticeable.
At the time of writing, Bitcoin is trading at $8,431, and the total crypto market capitalization is just above $267 billion. Nevertheless, a market correction of some sort was widely expected following the last few weeks’ intense Bitcoin rally.
With that said, however, this correction was both more sudden and more powerful than many had anticipated. Consequently, some doom and gloom analysts have already begun to suggest that Bitcoin and the cryptocurrency market may face a ”crypto collapse”.
Could this foreshadow a ”crypto collapse”?
The lead analyst at Bitcoin Bravado, known as ”Bitcoin Jack”, recently shared a series of tweets alleging as much. According to his tweets, the cryptocurrency market may have reached a ”bull exhaustion point”.
Furthermore, Jack went on to propose that a Bitcoin price of ”$4,900 – $5,125 is a magnet in to Q3 2019”. This would represent a marked turndown from the current price, even if it is unclear whether it would truly constitute a ”crypto collapse”.
Another Bitcoin analyst, ”Dave the Wave”, also suggested that Bitcoin prices around $5,000 may soon become a reality. Nonetheless, one should mention that talk of a crypto collapse is, at this point, likely overblown.
In reality, the cryptocurrency market has only suffered a relatively minor correction, following weeks of gains. Whether or not the cryptocurrency market is approaching a point of overheating is another question, but it does not yet seem to have occurred.
With that said, one should be sure to keep an eye on how the market continues to develop. As it stands, however, this is only a market blip so far. To be fair, ten out of the thirty billion with which the crypto market cap fell have already been recovered.
Moreover, other indicators suggest that the next crypto bull run might just be around the corner. As such, it seems premature to talk about a ”crypto collapse” – at least as of yet.
Image Source: That Tech Guru
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.