The worst week for the cryptocurrency market since November 2022 is coming to an end as its capitalization attempts to stay above $1 trillion.
Price trends across the cryptocurrency market remained in a downtrend on Aug. 19 as the total market capitalization tries to stay above $1 trillion.
Bitcoin
price has also been unable to hold the $26,000 level as the markets moved into the weekend.
The major down-move this week occurred on Aug. 17 following Elon Musk's SpaceX reportedly writing off its Bitcoin stash as well as several other major reasons.
Bitcoin, which controls nearly 50% of the total cryptocurrency market, reacted negatively to the SpaceX news as the selloff worsened amid a "bloodbath" of mounting liquidations across the crypto derivatives market.
Related: Why did Bitcoin drop? Analysts point to 5 potential reasons
As of Aug. 18, around 176,300 traders had liquidated $1.04 billion worth of contracts, with long exits making almost 80% of it. In other words, a long squeeze forced traders to sell at a loss to avoid even bigger losses.
The decline across the crypto market mirrored losses in the global stock market.
Notably, the MSCI World Index, which includes large and mid-cap stocks from twenty-three developed countries, dropped sharply on Aug. 17, as shown in the chart below. This coincided with mounting worries about China's economy and higher interest rates.
https://cointelegraph.com/news/why-is-the-crypto-market-down-today
