The cryptocurrency market remained bearish for the third straight day on Wednesday, with the market capitalisation coming below the $2 trillion mark for the first time in over a month.
The crypto market capitalisation decreased by 1.9 percent to reach $1.97 trillion as of 1330 hours GMT. Earlier on August 15, the total market value of cryptocurrencies rose above $2 trillion.
The price of bitcoin (BTC), the largest cryptocurrency, shed 1.83 percent to reach $42,307. With this decrease in price, the market capitalisation of the biggest cryptocurrency has reached $796 billion.
Likewise, ether (ETH) price went down by 3.08 percent to reach 2,940. With this decrease in price, the market capitalisation of ETH has reached $345 billion.
Similarly, XRP price shed 1.56 percent to reach $0.926. The market capitalisation of XRP stands at $92.5 billion after this decrease.
Following suit, cardano (ADA) price lost 3.18 percent to reach $2.11. Its market capitalisation has reached $68.2 billion after this decrease.
In the same way dogecoin (Doge) price shed 1.89 percent to reach $0.210. With this decrease in price, the market capitalisation of doge has reached $27.5 billion.
Bitcoin started its steep downfall on Monday, losing as much as 10pc during the day’s trading and dropping below the $44,000 level. Experts attribute this decline to the broader sell-off in the global equity markets due to fears over mounting problems at Chinese property giant Evergrande. However, some say that the embattled firm is not the only driver of the crypto decline.
They said that the market rout is reflecting a wider set of risks than just Chinese property, and comes after increasing questions have been asked about whether current valuations could still be justified, with talk of a potential correction picking up. According to Deutsche Bank’s recent survey, 68 percent of investors expect at least a five percent correction in equity markets by 2022.