The overall cryptocurrency market continues to slide further into bearish territory as the overall market cap slips from $2.762T CAD at the start of the year to roughly $2.280T early Friday morning (Jan 21st) - a 17.45% drop for the year. Comparing to the market cap peak of $3.685T reached on Nov, 9th 2021 shows a decline of more than 38% from all-time-highs. One arbitrary definition of a bear market is an overall market drop of at least 20% off their highs. Examining the top-10 cryptocurrencies in market cap, all of the coins are at least 25% off their highs excluding stablecoins.
The total market-cap has dropped to levels last seen four months ago late October 2021. If the market does not hold, we will likely test levels seen late July, 2021 at $1.5T - another 34% slump.
Cryptocurrency Summary
- Bitcoin dropped below $50k CAD late Thursday and has been sitting around $48k early Friday morning. Further downward pressure will see Bitcoin drop to support at $38k, levels last seen on July 2021.
- Ethereum slipped under $4k and is sitting at $3.5k. Further bleeding will test July lows of $2.3k.
- Binance failed to sustain its rally to over $620 that started roughly two weeks ago, dropping back to $530. Further market weakness could see Binance Coin test $420 and $340.
- Cardano much like Binance has failed to sustain its rally from $1.4 two weeks ago to over $2.0 at the start of the week, and is trading at $1.5 early Friday morning. Cardano has held the $1.2-1.6 trading range well throughout 2021 when other tokens we're affected by the sell off in 2021. Further downside would spell trouble for ADA and may drop below $0.50.
The overall crypto market is currently ripe with fear as investors face an onslaught of bearish news relating to volatility in the equities market, high inflation and interest rate hikes, crypto exchange hacks, to a potential Russia ban on cryptocurrencies. Expect volatility to continue as we roll into Friday morning. Remember this, do your own research and invest in quality coins, invest what you can afford to lose, and dollar-cost-average when possible.
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