Key takeaways:
- The market correction has pushed the price of Bitcoin to the $63,000 level in a matter of hours
- BTC dominance continues to drop, pointing to the strong market performance of alternative digital currencies
- Three altcoins have managed to gain more than 100% in the last 7 days
Shortly after peaking at $68,770 on Wednesday, which pulled the cryptocurrency market cap past $3 trillion for the first time, the price of Bitcoin dropped to the $63,000 level in a somewhat dramatic fashion. As is usually the case when short-term volatility shows its teeth, a cascade of liquidations saw more than $500 million worth of ‘longs’ erased from the order books.
Bitcoin bounces back after losing 8% in just three hours
After an explosive surge to a new all-time high on November 10, the world’s largest cryptocurrency experienced a somewhat expected correction. Bitcoin lost more than $5,000 over the span of three hours and dropped to a daily low of $63,345 before recovering back to $64,745 at the time of this writing.
The market drop was accompanied by a series of BTC long and short position liquidations, which removed $155 million from exchanges. The drop in the value of BTC pushed the total market cap below $2.85 trillion.
Despite Bitcoin receiving the biggest share of attention, for obvious reasons, the latest leg of the current crypto market rally has been more beneficial to altcoins than to BTC – the BTC market dominance dropped to 42.1%, the lowest value since early October.
Altcoins are gaining ground, BTC dominance falls to a five-week low
The decrease in BTC dominance points to the stellar market performance of alternative digital assets. The data from the cryptocurrency top 100 projects by market capitalization supports this claim – all blockchain projects in the top 100 sport a market capitalization larger than $1 billion with multiple projects showing high double-digit gains over the last week of trading.
Over the course of the last seven days, Loopring (LRC) has recorded a massive 203% increase in price and risen through the ranks to become the 46th largest crypto on a $4.4 billion valuation. Kadena (KDA) and Livepeer (LPT) have also gained more than 100%. Given their impressive gains, it is unsurprising that all three altcoins have renewed their respective ATHs in the last 48 hours.
Litecoin (LTC), Avalanche (AVAX), and Shiba Inu (SHIB) are the biggest gainers among altcoins belonging to the crypto top 20.
