Cryptocurrency Market Faces Resistance as Bitcoin Drops below $47,000

The cryptocurrency market is facing strong resistance from sellers as Bitcoin dropped below $47,000 for the first time in March. The overall market cap of digital currencies dropped from $1.55 trillion to $1.45 trillion in a single day.

According to the latest data provided by crypto analytics firm, a total of 145,552 traders were liquidated in the last 24 hours as Bitcoin, Ethereum, Polkadot, and Cardano lost significant value. Polkadot (DOT) remained the worst performer among the top 10 digital assets as the cryptocurrency lost more than 10% of its value in a single day.

Ethereum, the world’s second-largest cryptocurrency dipped below $1,500 on Friday. The digital asset is now down nearly 3% in the last 7 days. Despite the rising institutional inflows in ETH, the price of Ethereum is struggling to break above $1,700. As of writing, ETH is trading around $1,480 with a total market cap of $170 billion. Grayscale purchased 420 Ethereum in the last 24 hours.

Despite the recent sell-off in the crypto market, XRP jumped 5% in a single day to reach $0.48, its highest level in 7 days.

Cryptocurrency Supply

The latest data published by Glassnode shows that the world’s largest cryptocurrency Bitcoin is going through an alarming supply crisis since the start of 2019. Bitcoin balance on leading digital exchanges has reached its lowest level in more than 24 months. Finance Magnates earlier reported about Bitcoin’s liquidity issues and large cryptocurrency transactions. The supply shortage is not the only issue the cryptocurrency market is facing right now, a significant jump in the transaction fee of leading digital assets including Ethereum is a major problem as well.

The overall market cap of digital currencies is down by more than $300 billion in the last 2 weeks. The crypto market reached an all-time high of $1.76 trillion in February after Bitcoin crossed $58,000. The recent sell-off indicates that the cryptocurrency market is facing strong resistance from retail and institutional sellers.

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