BTC market cap drops under $1 trillion
25 Mar 2021
Bitcoin has fallen back under the $1 trillion market capitalisation again.
The third key correction in the present bull market is intensifying, with prices down 12.5% from their record high of $60,100 on 13 March, Cointelegraph reports.
At the time of writing, Bitcoin’s market capitalisation stands at $980 billion, having dropped $140 billion over the last week since 18 March, says CoinGecko.
The move follows a few days after crypto analyst Willy Woo forecast Bitcoin’s total capitalisation would not return below these levels again.
“$1T is already strongly supported by investors. I'd say there's a fair chance we'll never see Bitcoin below $1T again,” he said.
Bitcoin’s market cap first exceeded a trillion dollars on 19 February but dropped back after four days.
The second time it hit the $1 trillion mark was on 9 March, remaining above this mark until Thursday’s slump.
CoinGecko data shows the total market capitalisation for the cryptocurrency ecosystem as a whole is currently $1.65 trillion, this is a 9.8% drop - $180 billion – since 22 March.
According to crypto analyst Josh Rager, profit taking could be a significant factor in this pullback, who said unrealised profits are not realised until in the bank.
In reference to MicroStrategy CEO Michael Saylor whose company has bought a great deal of Bitcoin this year, he went on to say:
“Don't try to act like Saylor won't take profits eventually, cause he will along with every other fund on the planet. Then they'll buy back lower.”
Cointelegraph previously reported several indications that the pullback may continue. According to Glassnode’s risk reserve metric, conditions are similar to the second part of later stages of a bull market.
At the time of writing, the Bitcoin price stood at $52,682.