Crypto Bloodbath: Bitcoin Drops 7% to $7,500 as Crypto Market Loses $30 Billion

Over the past 24 hours, the Bitcoin price has dropped by more than 7.5 percent from $8,150 to $7,500, as the crypto market lost $30 billion in one of the steepest drops in the past 30 days.

Since July 29, Bitcoin recorded three consecutive sell candles on its one-day chart, demonstrating the lack of volume and decline in the momentum of the dominant cryptocurrency.

Throughout the past 48 hours, Bitcoin struggled to demonstrate any sign of recovery in its volume and price, and ultimately experienced a significant drop in its value overnight. However, despite its fall, Bitcoin has sustained its dominance over the rest of the crypto market, reaching a yearly high at 48.1 percent for the first time since January of 2018. The strengthening of the Bitcoin Dominance Index in a highly volatile period signifies the unwillingness of investors to take additional risks by investing in other major cryptocurrencies and small market cap tokens.

With investors utilizing stablecoins such as Tether that are hedged to the value of the US dollar to limit the losses of their investments in Bitcoin, and investors in tokens moving their capital back to major digital assets including Bitcoin and Ether, until the crypto market finds stability and establishes a strong base to initiate a mid-term rally, a short-term surge in the market valuation of tokens is difficult to envision.