Crypto Market Witnesses Sharp Decline, Hits 2024 Low

The digital asset market is facing a significant downturn, with a collective loss of $300 billion in just two weeks. In the past 24 hours, the overall crypto market cap has plummeted by 4.5%.

Bitcoin ETF Launch Impact:

After the recent launch of spot Bitcoin ETFs, Bitcoin (BTC) experienced substantial losses, ranking 99th among the top 100 crypto assets by market cap one week later. Presently, BTC is the 77th best-performing cryptocurrency in the past 24 hours, including stablecoins.

Bitcoin Hits Lowest Point Since December:

BTC is currently valued at $38,630, marking its lowest level since December 1. This represents a 5% drop in the last 24 hours and a 10% decline over seven days.

Ethereum (ETH) also Struggles:

ETH is down 8% on the daily chart and 14% in the past week, trading at $2,180, its lowest point for January.

Bitcoin Ecosystem Suffers Excessive Losses:

Assets within the Bitcoin ecosystem continue to face substantial losses. Ordi (ORDI) and Sats, both Bitcoin ordinals, saw the most significant drops, losing 17% each. Stacks, an EVM-compatible Bitcoin layer, experienced the 13th heaviest losses, with a 12% drawdown.

Positive Gainers Amidst Decline:

Chiliz (CHZ) and Bittensor (TAO) are the exceptions, gaining 2.3% and 4.4%, respectively, in the past day.

DeFi Resilience Amid Market Turmoil:

DeFi assets are holding up better than the broader web3 sector. The capitalization of DeFi tokens dropped 7.5% since reaching $82 billion on January 12. The sector's Total Value Locked (TVL) is currently at $55.7 billion, down from its 16-month high of $60.5 billion on January 11.

The current market trend raises concerns about the stability of digital assets, prompting investors to reassess their positions in the volatile landscape.