Total Crypto Market Capitalization Crashed 70%
The total crypto market capitalization has fallen under the $1 trillion mark as most cryptocurrencies have crashed over 80% from their peak prices. At the same time, Bitcoin (BTC) lost more than 50% of its value this year and is now trading near the $20,000 psychological number.
Crypto Market Cap
At the start of the year, the total crypto market cap stood at $2.24 trillion (based on the CoinMarketCap data), which was shy away from the all-time peak of $2.97 trillion. At the time of writing, the entire crypto market is only evaluated at $880 billion.
By comparison, Bitcoin’s market cap has fallen to $362 billion, down from the $902 billion it was at the start of the year. At its all-time peak, the total market cap of Bitcoin was $1.27 trillion.
What is the Crypto Market Capitalization and why does it matter?
The Crypto Market Cap shows the total value of the cryptocurrency market. The value is calculated by multiplying the price of the each crypto coin and token by the number of coins or tokens in circulation.
The market cap is important because it shows the overall value of the cryptocurrency market. It is also used to compare the market cap of different cryptocurrencies.
For instance, the market cap of Bitcoin is used to understand the value of Bitcoin relative to other cryptocurrencies such as Ethereum, Ripple, EOS, Dogecoin, and others.
History of Crashing
The collapse of the crypto market this year marks the third-largest crash since 2017. However, it’s the largest crash since the March 2020 “Black Thursday” when the market lost over $200 billion in 24 hours.
Bitcoin’s price is currently reflecting the negative sentiment that has been surrounding the crypto market. A number of experts believe that the top-ranked cryptocurrency by market cap is likely to fall below the $20,000 support level.