Record sales intensified during the first trading session of the week. Many altcoins including Ethereum have lost more than a quarter of their value. Bitcoin fell as much as 18% due to the "sentiments" of the market.
The decline pushed the value of Ethereum and Bitcoin lower, as they lost more than half of their value from their all-time highs in mid-April.
A very significant drop
The flagship cryptocurrency has recently been trading around the $ 35.000 price level. It is vital to note that the pioneering cryptocurrency hit a low of $ 31.200 on Sunday afternoon, erasing its earnings since the beginning of the year.
Ethereum also fell below the quotation of $ 2.000 due to high selling pressures, losing about half of its value in just one week. From a broader perspective however, Ether is still up 160% year to date.
The bullish sentiments of investors faded as Wednesday's price pick printed its biggest liquidation scenario in the Bitcoin market, as billions of dollars were written off as Bitcoin lost around $ 10.000 in hours.
Data from Glassnode supports all of this, revealing that this correction was the worst ever, including sales recorded in 2017; and it is the largest bull market correction since the consolidation period around 2013.
Although recent data suggests that retail investors and a few whales may have triggered the current sell-off, after the big plunge on Wednesday, currency inflows normalized and were not negative, with over-the-counter outflows bouncing back during the year. decline, showing strong purchases from large entities.
Not everyone rushed to sell bitcoins
However, many market strategists are facing a tough battle by giving a futuristic model to the cryptocurrency market after its collapse. With more likely headwinds, JP Morgan, the world's most valuable bank, recently pointed out that it was too early to undo the bull run regarding flagship cryptocurrency.
“It's too early to call the end of Bitcoin's recent bearish trend,” JPMorgan strategists wrote Friday. In the note, they cited in part the momentum signals and the lack of purchase of regulated Bitcoin and futures funds.
Additionally, many of the leading crypto assets, including Bitcoin, continue to enjoy significant gains over longer time frames. Using the annual time frame in particular, these assets continue to perform fairly better returns than many traditional investments.
Although the world's most popular cryptocurrency has had its worst market in history, recent price action suggests that investors are still piling up to record highs.