Crypto Market Values Nosedive Amid Global Market Meltdown, Widening Default Risks
Crypto markets have dropped a great deal in value over the last 24 hours as crypto assets across the board have lost anywhere between 7-15% in value during this time period. The overall market valuation of all 10,000+ crypto-assets in existence has slid just below the $2 trillion handle, losing over 9% in value during the last 24 hours.
Crypto Economy Slips by 9% During the Last 24 Hours
Bitcoin (BTC) prices were above the $48K zone on Sunday, September 19, but the following day, BTC prices are much lower as the crypto asset dropped to a low of $42,660 per unit on Monday. BTC has shed 8.9% in value and the digital asset’s market valuation is around $815 billion today. At the time of writing, a single BTC is swapping for just above $43K per coin.
The second-leading crypto asset, ethereum (ETH) has dropped 10.3% in value during the last day and each ether is exchanging hands for just above $3K per unit. ETH has an overall market valuation of around $355.4 billion on Monday.
The biggest loser out of the top ten crypto-asset market positions is XRP, shedding 13.8% during the course of the last day. Bitcoin’s (BTC) 8% loss is the least of all the percentage losses on Monday. Just before BTC’s slide below $45K, Etoro’s crypto analyst discussed the current market events.
“Bitcoin and ether both experienced a weekend slip after a week of climbing back to previous highs,” Simon Peters, Etoro’s crypto analyst wrote in a note to Bitcoin.com News on Monday morning. “BTC began the week below $45,000 after the flash crash of the week before. Having risen across the week to near $49,000 levels the price collapsed again on Sunday, falling away to now trade around $45,500.” Peters added:
Likewise, ETH began the week trading around $3,200 before rising to a high of $3,652 on Thursday. The token began a decline earlier than bitcoin though, falling away from Thursday and across the weekend to now trade below $3,200, a 13% decline.
Cosmos Remains Unscathed, Fears of Economic Turmoil Stemming from Evergrande Collapse and Default Risks Rise
Overall, the entire crypto market cap has lost over 9% in fiat value between Sunday and Monday. The top coins being traded include nine different stablecoins. Besides the stablecoin action today, the coin that took the least amount of fiat loss is cosmos (ATOM). Cosmos only lost 0.9% on Monday and is up over 9% for the last seven days. The biggest loser today is Algorand (ALGO) losing 16.6% during the last 24 hours.
Cryptocurrency markets have followed the drop across all global markets on Monday as a few warnings of economic turmoil have arisen. For instance, news outlets detail that the U.S. may default on financial obligations which could turn into another financial crisis.
The secretary of the U.S. Treasury, Janet Yellen, has warned of a debt ceiling fallout. Furthermore, global stock markets are in the red over China Evergrande shares dropping like a rock. Evergrande shares saw an 11-year low and speculators have claimed the Evergrande collapse could be like the next Lehman Brothers crisis.
What do you think about the market rout amid the global market meltdown over default risks and China Evergrande shares? Let us know what you think about this subject in the comments section below.
