After its global market capitalization dropped below the psychological threshold of $1 trillion, the cryptocurrency sector has continued to slump even further, with the market cap of Bitcoin (BTC), its largest asset by this indicator, losing more than $45 billion in the last 24 hours as bearish momentum has accelerated.
Indeed, the total cryptocurrency market cap by press time decreased to $928 billion, largely influenced by the maiden crypto’s market cap draining by over 8% in the past day and 11% over the week, currently amounting to $385 billion, according to the data retrieved from CoinMarketCap on March 10.
Indeed, the sentiment of ‘FUD’ (‘Fear, Uncertainty, and Doubt’), which had accumulated in the days leading up to the latest downturn with a series of unfavorable developments, such as the collapse of the crypto-oriented bank Silvergate, has further continued as the contagion spread across the crypto and finance sectors.
On top of that, the bearish momentum accelerated, coinciding with the news of New York Attorney General Letitia James recently filing a lawsuit against KuCoin, citing the failure of the fourth-largest crypto exchange to register with the state before allowing investors to buy and sell crypto on its platform.
Bitcoin price analysis
After losing the critical support level at $20,000, the price of Bitcoin fell to $19,915 by the time of publication, demonstrating a decline of 8.05% across the previous 24 hours, in addition to losing 15.13% in the past week and 14.51% over the last 30 days, and threatening the gains of 19.85% achieved since the year’s turn.
That said, the silver lining in the current market downswing is the low price of the flagship digital asset that has historically gone through a pattern of ideal times for key decision-making in crypto trading strategies – buy, hodl, and sell – suggesting for some waiting on the sidelines, this might be the right time to buy Bitcoin.
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