The crypto market has seen more than $50 billion wiped off its total market cap in the space of 24 hours. It comes hot on the heels of the market decline triggered by Binance’s massive planned FTT dump. Bitcoin, as well as other digital assets in the space, have all seen significant declines during this time as well.
Crypto Market Suffers
As expected, the ongoing battle between two large crypto exchanges, Binance and FTX, is beginning to have a profound effect on the general market. The crypto market which had been trending around a total market cap of $990 billion on Monday had fallen to as low as $910 billion in the early hours of Tuesday.
In the same 24-hour period, the price of bitcoin had finally declined below $20,000, while the FTT token had dropped more than 20% to be trading at around $15 at its lowest point. This brings the token’s total 7-day losses to over 30%, making it one of the top losers for the week.
Market cap loses $80 billion | Source: Crypto Total Market cap on TradingView.com
The decline in value has touched across the whole market with Ethereum being down 4.53% to be trading below $1,500. BNB, the native token of the Binance crypto exchange did not escape the onslaught but came out with much lower losses of 1.34%.
Sentiment Remains Low
Investor sentiment across the crypto market has continued its long stretch in the fear territory. Despite the recovery that saw bitcoin almost reach $22,000 last week, sentiment has remained negative. The Fear & Greed Index shows this with the low values for the week.
Market remains fearful | Source: Alternative.me
October had closed out in ‘Extreme Fear’ which shows some recovery in sentiment in the month of November but the score remains low. Last week’s value was 30 and the 31 recorded for the last 24 hours only shows a slight increase in this. This shows that investors remain extremely wary of the market. It also explains low accumulation and trading volumes in the market.
Until there is a resolution between Binance and FTX, expectations are the market will continue to see a decline in positive sentiment. It has already put a halt to the accumulation trend among whales that was recorded in the last two weeks. For such momentum to return, there would need to be calm both across the macro markets and top players in the crypto space.
Featured image from Analytics Insight, chart from TradingView.com