Why is the cryptocurrency market down today? Read here

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New Delhi: The largest cryptocurrency Bitcoin is currently down by 0.90% over the past 24 hours and has been trading around $51,316. BTC touched its all-time high of $64,000in April. Ethereum also dropped in value along with other popular coins like Dogecoin, XRP, and Cardano.

As we all know the crypto market is very volatile which means that you can see large swings with no notice, thus people find it very risky as you can witness a sudden fall.

An upswing can work wonders in your favor but a downward trend can leave you with less money than you put in. You might also be not able to access your investment portfolio if it goes down.

Which coins prices are down?

BTC is down by 0.90% and is trading at $51,316 where the 2nd largest coin Ethereum is also down by 6% and is trading $3,720. Altcoins like DOGE and SHIB were also down.

DOGE is down by 7%, on the other hand, SHIB is down by 7.20%.

Why the crypto market is down?

The Crypto market has already suffered series of blows apart from its regular volatility and it is difficult to mark a common problem that can state that why markets are down today.

As per Forbes, JP Morgan analysts warned that the markets may be down due to a correction following “retail investor mania”. Last month hackers stole around $600 million in a crypto heist and it can after a series of crackdowns that affect the whole world

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Crypto markets experienced a momentary tumble on Tuesday that resulted in some of the most popular digital-assets registering double-digit losses, until staging a mini recovery.

At last check, bitcoin BTCUSD, -0.69% was changing hands 46,964.65, down 9.1% but had sunk to an intrasession 24-hour nadir at $42,921.27 on CoinDesk.

Ether ETHUSD, -1.34% trading on Ethereum’s blockchain, the No. 2 largest crypto by market value, was down 12% at $3,461.97, but had hit a low at $3,036.30.

Popular meme asset dogecoin DOGEUSD, -1.62% was down 17%, at last check, at 25.3 cents, but had drifted lower to trade at 21 cents on the session.

Strategists said there was no immediate catalysts for the sudden drop and its recovery, but investors also noted that Coinbase Global Inc. COIN, -4.18% , the U.S.’s largest crypto exchange, reported trading problems due to volume on its platform.

As of 1:40 p.m. Eastern Time, Coinbase reported that its technical problems had been resolved.

The turmoil in digital assets comes as El Salvador officially became the first country in the world to adopt bitcoin as legal tender, allowing Salvadorans to do everything from buy goods and services to paying taxes.

Check out: Bitcoin is legal tender in El Salvador. What does it mean for the broader crypto market? Some bulls think ‘it could be huge’

Fawad Razaqzada, market analyst at ThinkMarkets.com, said that the recovery in crypto coincided with a tweet from Salvadoran leader Nayib Bukele, who vowed to buy the decline in bitcoin.

Razaqzada said bitcoin’s struggle to stay above a price at $50,000, which some technical analysts view as a point of resistance, may provide some fodder for crypto skeptics and raise concern among digital-asset enthusiasts.

“Whether this will ignite fresh momentum buying remains to be seen. Bitcoin repeated failure to hold above $50K must be concerning some bullish investors,” the ThinkMarkets analyst wrote.

Bitcoin Market Dominance Dips Down to 40% While Ethereum and Other Crypto Market Caps Swell – Market Updates Bitcoin News

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Bitcoin Market Dominance Dips Down to 40% While Ethereum and Other Crypto Market Caps Swell

While bitcoin prices have risen in value during the last two weeks, bitcoin dominance levels have slipped to lows not seen since the June 6 low of 41%, and the dip to 39.97% on May 16, 2021. Depending on the crypto market price aggregator leveraged, bitcoin’s dominance has been between 39.99% to 41.52%. Meanwhile, as bitcoin’s dominance has dropped significantly, crypto-asset markets like ethereum, cardano, binance coin, and tether have seen market dominance, in terms of overall valuation, steadily increase among the 10,000+ coins in existence today.

As Bitcoin Slides to the 40% Range, Ethereum Climbs to 20% of the Crypto Economy

It is well known that between the first time bitcoin (BTC) prices were calculated by market capitalization, and all the way up until February 2017, BTC had more than an 80% market dominance among all the other coins, for a majority of the time.

There was an instance in 2014, where BTC dropped to 77.9% in December and again in March 2016 to 76.42%. After the March 2016 dip, there were a few quick instances of dominance levels dipping under 80%, but nothing like what happened in February 2017.

On February 19, 2017, BTC’s dominance levels slid from 85.4% to a low of 37.84% in June 2017. From here bitcoin has never managed to move above the 80% handle since then and in September 2019, it rose above the 70% handle but for only a few days.

On March 1, 2021, BTC again tapped the 70% handle, but has since lost the market dominance again. One of the biggest markets eating into BTC’s cap is ethereum (ETH), which holds a 19.4% market dominance according to Coingecko stats.

Messari.io says ETH’s cap is 19.99% and coinmarketcap.com says the dominance level is 20.1%. Ethereum’s market valuation is around $460 billion on Sunday, September 5, 2021. During the last 24 hours, these three aggregators show BTC’s dominance has fluctuated between 39.99% to 41.52%.

Bitcoin’s market valuation at the time of writing on Sunday, September 5, is an aggregate total of around $940 billion. Other coin market caps have seen massive gains and this has furthered their dominance levels, and more specifically the top ten digital currencies by market capitalization. Today, all ten coins in the top ten list command 80% of the entire $2.36 trillion crypto market economy.

The top ten markets by market capitalization today include bitcoin (BTC), ethereum (ETH), cardano (ADA), binance coin (BNB), tether (USDT), XRP, solana (SOL), dogecoin (DOGE), polkadot (DOT), and usd coin (USDC).

While ADA has more than 4% of the entire crypto-economy in terms of market dominance, BNB has 3.71%. The stablecoin tether is nearing the three percentile mark with 2.98% of the whole crypto economy. XRP is a bit lower than tether at 2.21% and the new top ten contender solana (SOL) has 1.79%.

In terms of the remaining top ten coins and the rest of the cryptocurrency market caps below them ($472 billion) are also contributing to the swelling value of the overall $2.36 trillion crypto economy. Crypto coins like fantom (FTM), iota (MIOTA), kusama (KSM), and iost (IOST) all saw significantly-sized double-digit gains during the last seven days.

What do you think about bitcoin’s dominance levels dropping to new lows? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Coinmarketcap.com, buybitcoinworldwide.com/flippening/,

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