Share articles to

Academy Trading Ideas Article
Bitcoin Crypto Market Daily DeFi Ethereum OKX Insights

Crypto market crash removes 20% from market in hours

2021.05.20 Adam James

A crash of rare proportions has rocked the cryptocurrency market today, with many altcoins temporarily seeing losses greater than 40%. 

The cryptocurrency market has undergone a severe sell-off — the kind that only happens once or twice per year. 

Over the past 24 hours, the price of BTC has declined by more than 15%. At the same time, ETH and various altcoins have dropped roughly 25% or more. However, as of the time of this writing, today’s lows for many altcoins were hit after dropping by more than 40%.

As it stands, the total cryptocurrency market capitalization has dropped by more than 20% in a single day.

The cryptocurrency market has experienced as bad a sell-off as they come, with only stablecoins remaining relatively unaffected. Source: Coin360

If the cryptocurrency market was extremely fearful yesterday, it will surely be even more so tomorrow morning, when alternative.me’s multifactorial crypto market sentiment analysis updates.

Fear in the cryptocurrency market remains at extreme levels. Source: Crypto Fear & Greed Index

DeFi TVL drops $10 billion

The total value locked in decentralized finance has held up relatively well, some might argue, amid a somewhat historic cryptocurrency sell-off. The key metric has only dropped roughly $10 billion to its current $69 billion. Still, top projects have sustained double-digit percentage losses to their TVLs, with leading protocol Maker losing more than 18%.

Decentralized exchanges are seeing double-digit TVL losses across the board, with SushiSwap taking a slightly larger hit than rival Uniswap and first-place Curve Finance.

The total value locked in DeFi has fallen below $70 billion. Source: DeFi Pulse

Top altcoin gainers and losers: DMG surges 470%

  • ZKS/USDT -36.96%
  • BTM/USDT -37.18%
  • CHAT/USDT -38.54%

There are no gains for non-stablecoin altcoins today, with the exception of DMG, which is randomly up more than 400%.

DMG is up more than 470%. Source: OKX

BTC technical analysis: Temporarily fell below 30,000 USDT

The price of BTC dropped significantly to prices below 30,000 USDT before wicking back up to above 37,000 USDT. With such a long lower wick on the four-hour time frame, one might be tempted to assume that the bottom is in — which very well may be the case. However, wise traders will be cautious about overextending themselves in either direction until the cryptocurrency market leader settles down.

OKX’s BTC/USDT 4h chart — 5/19. Source: OKX, TradingView

ETH technical analysis: 1,000 USDT lower wick shocks traders

The price of ETH is currently exhibiting a roughly-1,000 USDT wick — unheard of price action for the second-ranked cryptocurrency. It stands to reason that the bottom is in for ETH, but traders will still be cautious about their positioning going forward.

OKX’s ETH/USDT 4h chart — 5/19. Source: OKX, TradingView

Not an OKX trader? Learn how to start trading!

OKX Insights presents market analyses, in-depth features and curated news from crypto professionals.

Follow OKX Insights on Twitter and Telegram.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.