Crypto Market Cap Drops Below $2.7 Trillion Amid Bitcoin Sell-Off
The crypto market faced a significant downturn on Tuesday, with total market capitalization at just above $2.7 trillion, reflecting a nearly $1 trillion decline since December 2024.
Key points include:
- On-chain metrics indicate bitcoin may have reached a local bottom.
- The Crypto Asset Sentiment Index hit its lowest level since August, linked to the yen carry trade unwinding, which saw bitcoin around $49,000.
- Andre Dragosch from Bitwise Europe suggested a contrarian buy signal for bitcoin due to widespread bearish sentiment.
- Investors experienced $1.8 billion in losses, marking the largest single-day realized loss since August.
- Short-term holders sent 43,600 BTC (valued at $3.9 billion) to exchanges at a loss, the highest since August 2024.
These indicators suggest bitcoin may be approaching a significant turning point.