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The volatility in crypto markets does not seem to cool down as Bitcoin even erased its $19,000 mark. The leader of the board, BTC along with other major cryptos like Ethereum, BNB, Solana, Cardano, XRP, and Dogecoin witnessed a massive drop between 9-20% in the last seven days session pulling the global crypto market cap below $870 billion.
As per CoinMarketCap data, on Sunday, the crypto market cap was around $861.27 billion down 1.04% over the last day. In volume terms, the market saw transactions dipped 29.2% to $39.77 billion over the last day.
The total volume in DeFi is currently $4.19 billion, 10.55% of the total crypto market 24-hour volume. The volume of all stablecoins is now $36.59 billion, which is 92.00% of the total crypto market's 24-hour volume.
Bitcoin led to the downfall in the crypto market during the week due to its dominance which still makes it the largest cryptocurrency available for trading. BTC currently is around $19,042.71 down 1.1%. However, it touched the day's low of $18,966.95. Its market cap currently is around $363.32 billion.
At present, Bitcoin’s dominance is at 42.13%, a decrease of 0.24% over the day.
Ethereum struggled a little over $1,050 and traded flat. The second-largest cryptocurrency market cap is around $128.09 billion.
In the last seven days session, as per CoinMarkCap data, Solana was the worst hit with a weekly drop of over 20%. Meanwhile, XRP and Ether tumbled by nearly 15% in a week. Bitcoin shed over 11% in the week, while BNB slipped over 10%. Cardano dived 12.5% and Dogecoin plunged a little over 9%. These selloffs in these cryptos heavily weighed on the broader market sentiment.
Crypto markets have been under pressure since May with Terra tokens UST and Luna collapsing. The latest casualty in the crypto crash would be Three Arrow Capital (3AC) whose collapse dampened confidence in crypto markets.
Last week, a court in the British Virgin Islands ordered the liquidation of crypto hedge fund 3AC, after the company suffered major losses in the recent market turmoil. Recently, 3AC liquidated its positions after it failed to meet margin calls. Also, the crypto platform, Voyager issued a notice of default to 3AC of a loan amounting to $650 million.
Following the bearish tone in the market, many crypto exchanges like Binance, Celsius, and CoinFlex among others recently halted their withdrawals and deposits to cap the outflow in crypto markets.
The latest to suspend trading and deposits will be Voyager Digital due to its exposure in 3AC, while digital-asset lender BlockFi has won a potential deal with FTX US which is likely to acquire the former.
According to a Bloomberg report, both Voyager and BlockFi were upended by the woes of Three Arrows Capital Ltd., the beleaguered crypto hedge fund that was ordered for liquidation by a British Virgin Islands court this week and filed for Chapter 15 bankruptcy protection in New York.
The reason behind cryptocurrency platforms halting their withdrawals and deposits is that there is a massive decline in their liquidity.
