Volatility is back in the crypto market and Bitcoin is trading under $4,000 now. Bitcoin is not the only crypto to get affected, the entire market is down so much so that there are only 9 cryptos with more market cap than $1 billion.
Cardano the 10th largest crypto, with a trading value of $0.038 has dropped under $1Billion in market cap. Bitcoin still has the highest market cap by a huge margin maintaining its market dominance over 53%. Although Bitcoin’s market value is $67 billion and down significantly from its high of $237 billion, it still is a huge number. It still has market value more than electric car and battery technology trailblazers Tesla which has a market cap of $61 billion.
XRP is the second biggest crypto with upwards of $14 billion in market cap although at its peak it had more than $100 billion in value. Ethereum, which lost its second spot during the recent bear run has a market cap of $11.3 billion. Another notable change in the top 10 cryptocurrencies is that Stellar has surpassed Bitcoin Cash to take the 4th spot.
As a whole, the entire market cap of cryptos is down 75% from its peak. Currently, all market indicators are in the red, except for stablecoins and fringe currencies like Waltonchain, which is up 200%.
Interestingly, there has been increasing suspicions that Tether and Bitfinex have manipulated the market. Bloomberg reports that the criminal probe is specifically focusing on Tether’s connections with bitcoin price fixing. Some traders — as well as academics — have alleged that these Tethers are used to buy Bitcoin at crucial moments when the value of the more ubiquitous digital token dips. Although, JL van der Velde, the chief executive officer of Tether Ltd. and Bitfinex, has previously rejected such claims.
Even though things might look grim, it is important to remember that cryptos are making progress in regulatory clarity and adoption across the globe.