Crypto Market Insights: Covid-19 Crash vs. 2024 Sell-Offs
At Extreme Investor Network, we delve into the latest data and trends in the cryptocurrency market to keep our readers informed and ahead of the curve. Our recent analysis of the crypto market, based on data from CoinGecko, highlights the impact of the Covid-19 crash compared to the sell-offs in 2024.
The Covid-19 Crash: A Historical Perspective
In our analysis, we found that the Covid-19 induced crash on March 13, 2020, remains the most severe global crypto market correction in the past decade. The market witnessed a dramatic -39.6% drop, with the total crypto market capitalization plummeting from $223.74 billion to $135.14 billion in a single day. This crash sent shockwaves through the crypto industry, highlighting the vulnerability of digital assets to external factors.
Comparing 2020 and 2024 Crypto Corrections
Contrastingly, the largest crypto market sell-off in 2024 was significantly milder, registering only an -8.4% decline on March 20. Despite recent fluctuations in market cap, including a four-day decline from $2.44 trillion to $1.99 trillion between August 2 and August 6, 2024, none of these fluctuations were substantial enough to be classified as market corrections. This relative stability post-FTX collapse in November 2022 reflects a period of consolidation in the crypto market.
Insights on Bitcoin and Ethereum Corrections
Our analysis also delved into the performance of key cryptocurrencies during market corrections. Bitcoin (BTC) experienced its most significant price correction on March 13, 2020, with a -35.2% drop, while Ethereum (ETH) saw an even steeper decline of -43.1% on the same day. These corrections underscored the risk-off sentiment prevalent in the market during times of uncertainty.
Duration and Frequency of Crypto Corrections
Historically, crypto corrections have lasted for only two consecutive days, with notable instances in the past decade. However, 2023 was a unique year with no days of market correction, signaling a period of sustained recovery in the crypto market. Our analysis highlights the frequency and impact of corrections, with 2018 standing out as a year with the highest number of significant declines.
Top Crypto Corrections: A Detailed Analysis
Our study ranks the top 20 biggest global crypto market corrections from January 1, 2014, to August 6, 2024, providing insights into the most significant market movements over the years. Understanding these corrections can help investors navigate the volatile crypto landscape and make informed decisions.
Methodology and Conclusion
Our analysis is based on daily percentage changes in total crypto market capitalization, Bitcoin price, and Ethereum price, using data from CoinGecko. Corrections were defined as decreases of 10% or more, with a detailed methodology outlined in the full study. For more insights, we recommend referring to the complete report on CoinGecko.
Stay tuned to Extreme Investor Network for more updates and in-depth analysis of the crypto market trends!