The bearish market continues in crypto as Bitcoin briefly dropped below $21,000 Monday morning.
Bitcoin—the largest cryptocurrency by market cap—last hit that low mark in mid-July before going on a little resurgence for about three weeks. However, it started dropping again last week, losing around 10%.
The drop sent the total crypto market cap teetering right at about $1 trillion.
Later in the morning Bitcoin was trading well above $21,000.
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In addition to Bitcoin’s continued woes, Ether also has taken a hit of late. After hitting highs not seen since May, Ether is down nearly 15% in the last week.
Ether—the second largest cryptocurrency by market cap—dipped as low as about $1,530, before settling in at around $1,580 later in the morning.
Ether’s gains earlier in the month were likely buoyed by Ethereum’s continued progress toward its software transition from using proof-of-work to proof-of-stake to validate transactions. The blockchain successfully tested the transition—or “merge,” as it is called—in July and the move to proof-of-stake is expected next month.
The change is significant as proof-of-work consensus is energy-intensive and therefore considered by many to be environmentally unfriendly.
The declines over the last week may be cornering, considering there is not a clear market driver for it. While the implosion of the Terra stablecoin and bankruptcies of crypto lenders were clear factors into the earlier decline this summer, there is not a immediately recognizable factor leading to the current dip aside from the rocky economy.
It was just last November when many cryptocurrencies were at an all-time high—including Bitcoin flirting with $68,000.
Those days seem like a lifetime ago—especially for investors.
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Illustration: Dom Guzman
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