As Bitcoin (BTC) continues to see rising selling pressure, its market cap has fallen below $1 trillion again. The third key price correction in the prevailing bull market is intensifying and prices have already eroded by 12.5% from their all-time peak of $60,100 on March 13.
As per CoinGecko, the market cap of Bitcoin is presently $980 billion, reflecting an erosion of $140 billion in the last seven days since past Thursday, March 18. The downtrend has come only days after analyst Willy Woo forecast that its aggregate market cap will not decline below these levels once again.
The market cap of Bitcoin crossed a trillion dollars for the first time on February 19, but was unable to stay at those levels. Selling pressure pushed the market cap below the psychological mark of $1 trillion in a span of four days. The second time it breached ten figures was on March 9 and it stood above the landmark level until today’s decline.
URPD: "7.3% of bitcoins last moved at prices above $1T"
This is pretty solid price validation; $1T is already strongly supported by investors. I'd say there's a fair chance we'll never see Bitcoin below $1T again. pic.twitter.com/bf8uXkht16
— Willy Woo (@woonomic) March 21, 2021
The aggregate market cap of the cryptocurrency market is presently $1.65 trillion, as per CoinGecko. The market cap has declined by $180 billion (or ~10%) since March 22. Another major reason for the decline could be profit booking as assumed by analyst Josh Rager who pointed out that unrealized profits cannot be counted as profits until they reach the bank.
Citing MicroStrategy CEO Michael Saylor whose company has been acquiring large volumes of Bitcoin for the past few months, he said:
Beeple was smart to cash out
Unrealized profits aren't realized until they're in the bank
That's with ETH or BTC, yes I said BTC too
Don't try to act like Saylor won't take profits eventually, cause he will along with every other fund on the planet
Then they'll buy back lower
— Rager 📈 (@Rager) March 24, 2021
There have been a lot of signals confirming that the retracement will continue. Analytics provider Glassnode utilized the risk reserve metric, which estimates optimism of long-term holders in comparison to Bitcoin’s price, to indicate that environment is almost the same as the second-half or final stages of a bull market.
CryptoQuant, in the meantime, studied the flow of Bitcoins to and from exchanges to forecast that it would take some more days for precisely calculating the overall demand-supply scenario. When writing this article, Bitcoin was trading at $52,000, down 4% in the last 24 hours as fear, uncertainty and doubt (FUD) seems to take control over the crypto market.
