Max pain scenario intensifies as Bitcoin drops to $31K, altcoins sell-off

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Bitcoin (BTC) and the broader cryptocurrency skilled one other wave of in a single day promoting which deepened on May 23 as the vast majority of tokens pummeled to multi-month lows. The market-wide sell-off resulted within the whole cryptocurrency market cap shedding one other $250 billion in worth to $1.33 trillion. 

The whole market cap has now skilled a 46% pullback from the May 11 all-time excessive at $2.56 trillion, however the beautiful flip of occasions has left the overwhelming majority of merchants scrambling to lock in any features skilled throughout the run up.

Total cryptocurrency market capitalization. Source: CoinMarketCap

This latest wave of promoting stress managed to efficiently break under the $36,000 assist stage, sending BTC worth as little as $31,000. 

Ether (ETH) was hit with a 20% drawdown in worth that smashed its worth again under $2,000 for the second time in per week, marking a 56% decline in its worth from its all-time excessive at $4,362 which was established simply 11 days in the past on May 12.

BTC/USDT vs. ETH/USDT 1-day chart. Source: TradingView

While the magnitude of the Bitcoin pullbacks is beginning to diminish following a number of weeks of worth declines, the continued promoting has hit the altcoin market exhausting with Sunday’s worth rout shaving no less than 30% off a majority of the cash within the prime 100 as capitulation set in for merchants from across the globe.

Polkadot (DOT) fell greater than 40% to a low of $14 and Solana (SOL) shed 36% of its worth to hit a low at $19.

Polygon (MATIC), which reached an all-time excessive at $2.68 simply 5 days in the past, has now fallen 69% and trades under $0.84 on the time of writing.

MATIC/USDT 4-hour chart. Source: TradingView

The total cryptocurrency market cap now stands at $1.285 trillion and Bitcoin’s dominance charge is 46.9%.

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