The Cryptocurrency Market Experienced a Major Correction
Most cryptocurrencies have dropped by 10-15% over the past 24 hours.
The cryptocurrency market has come down by $220 billion in the last 24 hours, losing about 8,5% as of 14:00 (UTC+2). The total cryptocurrency market capitalization is currently about $2,63 trillion, according to CoinMarketCap.
Almost all cryptocurrencies, except stablecoins, showed a decline:
- Bitcoin (BTC) — 7,84%;
- Ethereum (ETH) — 9,28%;
- Binance Coin (BNB) — 9,36%;
- Solana (SOL) — 7,52%;
- Cardano (ADA) — 8,92%;
- Ripple (XRP) — 8,97%;
- Polkadot (DOT) — 12,17%, etc.
At the same time, weekly quotations of cryptocurrencies sagged by 5-10%. Only UMA (5,62%), LEO (4,68%), NEXO (1,25%) and DAI (0,25%) showed slight growth.
Among the most likely reasons for the market correction, experts call the approval of a major $1,2 trillion infrastructure plan by U.S. President Joe Biden the day before. The document obliges cryptocurrency brokers and operators to record any transaction valued at more than $10,000 with the IRS.
On the same day, Senators Ron Wyden and Cynthia Lummis introduced a bill to amend the infrastructure legislation. In particular, it was proposed to exempt individuals developing cryptocurrency wallets and blockchain technology from reporting.
Vince Pellizzari, CoinsPaid Trader, shared his opinion on the situation with us: “The recent correction on BTC from a new All-Time High posted on the 10th of November at 69156,5 USD is nothing more than a natural and healthy pullback. Indeed, markets do not move in straight lines, and it is more than normal to see corrective moves within a trend. As long as we remain above the 60K USD key level, bullish traders have no reason to be worried, any daily close below 60K USD could trigger a continuation of the corrective move toward the 48K-50K USD zone“.