Since the beginning of the year, the crypto market has endured some levels of uncertainties. Despite coming into the new year on the back of a surge that saw Bitcoin and Ethereum touch new highs, it is safe to say that the crypto market is trying to navigate volatile waters.
Some weeks ago, Bitcoin touched a new all-time high figure of $58,000 before being forced down by the bears in what appears to be a correction. Ethereum was not also far behind as the digital asset left a trade zone above $2,000 to trade somewhere around $1,800. Some days ago, the tide swung in favor of the digital assets as both of them witnessed some remarkable gains. Bitcoin, on its part, touched a new record high of above $60,000.
Bitcoin recently created an all-time high of above $60,000
Despite Bitcoin trying to hold on to its new price of above $61,000, the bears came for their turn in the market, which saw the digital asset crash to another daily low. Presently, the digital asset is trading in the $50,000 region, registering a $3,000 price fall in the process.
This drop signifies that in the last 24 hours, Bitcoin has shed off close to 55% of the gain that it registered over the weekend. A look at the market cap of the crypto market with the crash of the leading digital asset showed that the figure moved from its previous destination of $1.82 trillion that it registered across the weekend to rest at $1.72 trillion.
This recent decline came when the crypto community on Twitter was discussing various crypto-related issues and entities, including Coinbase and Bitcoin. The topic was said to have been born out of some of the citizens in America that has been given their stimulus checks.
Americans might use their stimulus checks to buy Bitcoin
If Americans decided to use the stimulus checks to purchase Bitcoin during the period, it would have had a massive effect on the price of the digital asset. While Bitcoin suffered a cruel fate to start the market day, most cryptos in the sector did not survive the onslaught as most of them saw negligible losses to major losses.
Ethereum, which has always been known to follow the trend of Bitcoin, followed the digital asset both when it saw a price rise and when the price gave way to the bears. Ethereum posted a loss of 4% to begin the market day, the only feat that it has gathered in the last one day. For mid-cap digital assets, the ones that saw a slight decline were the ones that saw 4% losses.
Chainlink and Bitcoin Cash were not spared as both coins saw a decline to post losses of 7% and 8%, respectively. While middle cap coins saw massive losses, low cap coins were not involved in the loss as Hex and Algorand both saw a massive price gain of 9%, with VeChain coming close with a profit of 7%.