- The prices of Bitcoin and several other cryptos fell by a significant margin over the weekend.
- However, the market seems to be regaining its lost ground as Bitcoin is stabilizing continuously close to the $50k mark.
- Other cryptos have also faced similar nuances in the past and show substantial gains in all the markets.
Collated data from markets.bitcoin.com show that the crypto markets are steadily recovering in all aspects after the great weekend slump. CoinDesk has reported that this could possibly be a cause of US President Joe Biden’s recent taxation proposal. According to The Statesman, there will be an increase in capital gains tax from the current 23% to 43%. This is levied on high-income and high net worth individuals, leading to several of them dumping their Bitcoin reserves, leading to the weekend slump.
About $300 billion worth of Bitcoins dumped
The market capitalization of Bitcoins saw a massive reduction after the $300 billion dumps. Due to other cryptos’ market dependence on Bitcoin, almost all of them saw significant crashes in valuation. Statistics collected from TradingView clearly depict that all the cryptocurrencies’ total market capitalization fell from $2 trillion to 1.7 trillion over the past week. Data aggregator Bybt has also reported a slump of over $3.4 billion in crypto liquidations as markets tend to be a little more exaggerated. In a statement to CoinDesk, Darius Sit of QCP capital told that all markets are somewhat correlated as they share their fears of significant market events such as this price slump. In another statement to Coindesk, Jean-Marc Bonnefous of Tellurian Capital acknowledged the fact that BTC has somewhat stabilized at the $50,000 mark.
Ether to stabilize sooner
CoinGecko data has shown that Ether trading volumes have significantly increased over the past year, leading to optimism that its recovery could be much faster than Bitcoin. However, data from CoinDesk 20’s indices have clearly revealed that all the indices are still trailing in the negative when writing this article, with OMG, XRP, and EOS seeing the largest losses.
Traders and technicians are highly optimistic about the gain in markets and hope that the bullish rally will soon continue.
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