Fresh fall takes Bitcoin to $24,000, crypto market cap falls below $1 trillion

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After months of falling prices, Bitcoin’s price on June 13 dropped to $24,000, which was an 18-month low. The market cap for Bitcoin stood at $457.12 billion, according to coinmarket cap while the crypto market cap dropped below $1 trillion.

Ethereum has also dropped 16.20 percent in the past 24 hours and its market cap stood at $149.24 billion. 

This comes after a blockbuster year for crypto trading as Indian exchanges onboarded millions of users by end of 2021. However, Indian exchanges have been witnessing a dip in volumes since the first week of April, after the Government implemented a 30 percent tax on virtual assets. The decline in trading volumes is expected to continue as these another 1 percent TDS will be charged from July 1.

“An on-going sell-off was seen over the weekend, as BTC traded near the $25,000 level. The crypto Fear and Greed Index still showed a sentiment of “extreme fear”; this indicated that most investors were still extremely bearish,” said Darshan Bathija, CEO & CO-founder of Vauld.

“The recent inflation numbers (consumer price index) seen in the US has had a negative effect on most markets. Most investors will be keenly looking at the U.S. Federal Open Market Committee meeting slated for June 14 and 15th. An interest hike by the Fed is already priced in; however, most investors worry that unless inflation numbers start dropping soon, the Fed will likely have to tighten reigns at a faster pace than anticipated,” he added.

Experts anticipated that the crypto market may take anywhere between 12 and 24 months for revival. While some continue to buy the dip, many are reluctant to trade or invest further into the market. Trading volumes have dipped by 90 percent, say experts.

"The volatility in the market would continue, which would have a significant impact on the valuation of other coins like Ripple, Cardano, Tether, Solana, etc. With inflation figures on the rise, we are witnessing massive sell-offs from the investors as they intend to stay away from such markets. Historically, crypto markets have always bounced back strongly after such immense correction. Going forward, I believe the volatility would continue and there would be immense pressure on Bitcoin and other key altcoins as well," said Praveen Kumar, Founder & CEO, Belfrics.