Cryptocurrency Market Crashes after Bitcoin Drops below $39,000

Cryptocurrency Market Crashes after Bitcoin Drops below $39,000

May 19, 2021

The cryptocurrency market cap dipped below $1.8 trillion on Wednesday after Bitcoin reached a low of $38,700, its lowest level since February 2021. As of writing, BTC is trading near $39,000 with a market cap of approximately $730 billion.

According to Coinmarketcap, the cryptocurrency market lost nearly 15% in the last 24 hours. Ethereum, the world’s second-largest cryptocurrency dipped below $3,000 and touched a low of $2,867 on 19 May. ETH now has a market cap of $340 billion.

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The latest crash in the cryptocurrency market has triggered massive liquidations. According to the latest liquidation data published by crypto analytics firm bybt.com, nearly $1.5 billion worth of long crypto positions got liquidated in the last 24 hours. Bitcoin accounted for liquidation of approximately $800 million worth of long positions. Ethereum came at the second spot with the liquidation of over $350 million worth of long positions.

Bybt.com highlighted that more than 260,000 cryptocurrency traders got liquidated in the last 24 hours. The largest single liquidation of Ethereum happened on Bybit crypto exchange with a total value of over $12 million.

Cryptocurrency Dip

The recent dip in the value of cryptocurrency assets came after Elon Musk thrashed Bitcoin and called BTC a highly centralized cryptocurrency. Last week, Tesla announced the suspension of Bitcoin payments. In a recent tweet, Musk said that large mining companies are controlling BTC. The cryptocurrency market reacted negatively to his comments and the overall market cap of digital currencies lost approximately $500 billion during the last 7 days. Bitcoin and Ethereum are down by more than 30% within the last 7 days.

Cryptocurrency assets like Binance Coin (BNB), Cardano (ADA), and Dogecoin (DOGE) are also down heavily today. BNB and DOGE remained the worst performing digital currencies among the top 5. BNB is down by nearly 20% while DOGE has lost 18% of its value in the last 24 hours. The overall market cap of digital currencies is currently hovering around $1.8 trillion, down from $2.3 trillion on 15 May.

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