Price drops for Bitcoin and Ethereum, sell-off on the way?

17 Dec 2021

Cryptocurrency prices have fallen, with Bitcoin – the world’s largest cryptocurrency by market cap - dropping by 2.4%, trading at $47,807.03 at the time of writing. The second largest cryptocurrency, Ethereum, declined by 2.0%, trading at $3,976.49 in early Friday training.

Following on from Thursday’s trend, meme cryptocurrency Dogecoin fell 3.7% over the past 24 hours to trade at $0.174720, with Shiba Inu falling 3.5% to $0.00003295. Other cryptocurrencies also declined over the past 24 hours, with Polygon, Polkadot, Litecoin, Chainlink and Cardano all trading at far lower gains.

Global crypto market capitalisation on Friday stands at $2.34 trillion, a 2.2% decline over the past 24 hours, according to CoinGecko data.

Moreover, total cryptocurrency trading volume stands at $109 billion, with Bitcoin holding 38.7% dominance, and Ethereum at 20.2%, reports CoinGecko.

The current price dips are being used as a buying opportunity by serious long-term crypto investors. Earlier this week deVere CEO Nigel Green commented: “The volatility is always used as buying opportunities by rich traders to top up their portfolios. Those Bitcoin panic sellers are practically giving away their cryptocurrencies to wealthy buyers who accumulate, accumulate, accumulate.”

However, indications are increasing that a pronounced sell-off could be on the cards, says a Mint report, which may be fuelled by the U.S. Federal Reserve’s hawkish stance earlier this week. One such indication is the declining trading volumes for both cryptocurrencies and non-fungible tokens (NFTs) following surges. Indeed, both Coinbase and Block reported crypto trading revenue fell substantially short of market expectations in their latest reported quarters, as transactions on their platforms decelerated.

Nevertheless, the global market for NFTs reached $22 billion in 2021, compared to $100 million last year, according to DappRadar data, with the floor market cap of the top 100 NFTS standing at $16.7 billion.

“Hollywood, sports celebrities and big brands like Coca-Cola, Gucci, Nike, and Adidas, made their dent in the space, providing NFTs with a new level of exclusivity. The power of attraction of these famous names profoundly impacted NFTs and the blockchain industry overall,” said DappRadar.