The crypto market is drowned in another red day to bring thoughts of another month of crashing similar to May, much worst than its preceding one from yesterday, DOGE taking the biggest hit to plunge by about 25% over the past 24 hours.
Briefing
Looking at the top 10 cryptocurrencies according to market cap, there has been additional changes since yesterday, which then also had surprising changes. From yesterday, the most surprising change was the appearance of Binance USD (BUSD) within the top 10, overtaking Uniswap (UNI). Since then, BUSD has had an increase in market cap of about $200 million and an increase in 24-hour trading volume of about $1.3 billion - a great increase, indicating a volatile market, which may last for a long time. This increase may continue over the coming days, BUSD coming up against Polkadot (DOT) that would have a decreasing market cap as it is hit with the market crash.
Another US stablecoin moved in today's market crash: USD Coin (USDC). It overtook Dogecoin (DOGE), suffering a decrease of about 25% (24.8% to be exact) over the past 24 hours at the time of writing, to come at 7th. USDC built a decent margin between itself and DOGE of about $1 billion in market cap, its next challenger XRP (XRP) that also has an approximately $1 billion margin. USDC may continue to have an increasing market cap as more people migrate into USDC without affecting the value that makes it move further up the table, XRP having the opposite: decreasing market cap as more people migrate out/in to affect its value. This table movement could be similar to BUSD, sitting before around 15th, but now at 10th.
The increasing appearance of US stablecoins indicates that more people are becoming worried about the market's future and prices, migrating into these stablecoins to wait for the crisis out.
Going into the top losers over the past 24 hours, it is surprising to find that NEO (NEO) is at the front with a 24-hour loss of 21.7%. It was written previously that DOGE was the most affected, but it appears that since writing then DOGE has quickly recovered to relieve some of its sufferings. Skimming to the trend over the past 1 hour for DOGE, it comes at 3.9%, which is one of the most hourly movements, though others overtop it, the highest Telcoin (TEL) at 5.6%. Such high hourly movements and changes to 24-hour price changes further prove the volatility of the crypto market, a time of risk for short-term investors. Theta Fuel (TFUEL) also makes an interesting appearance in this scope, previously having bullish trends to break the 60 cent mark and ATH (All-Time High), with a loss of 20.9% at the time of writing.
Switching over to the top 10 cryptocurrencies according to 24-hour trading volume, there has been a considerable increase for this variable for the leading three: Tether (USDT), Bitcoin (BTC) and Ethereum (ETH). USDT has had the largest increase, yesterday recorded at around $78 billion, but now is about $88 billion - a $10 billion increase. Following is ETH of approximately $4 billion increase - from ~$33 billion to ~$37 billion - then BTC at the lowest of the three at ~$2 billion - from ~$45 billion ~$47 billion. Following ETH is DOGE, which was much lower yesterday. This means that there is much more activity going on since yesterday for DOGE, most likely causing the great plunge previously recorded.
Discussing Possible Causes Of Latest Crash
As with every crisis, there is panic, and this latest crypto market crash is no different. It is likely and much expected that many people are and will panic about the market's crash, becoming worried about the future of the crypto they hold. This is acceptable, though can become over-the-top with excessive thoughts and predictions, such as BTC becoming to a value to $0, which to be frank will never happen in the future of crypto. For possible causes of the latest crash, the main answer would be for almost every other crash that has happened, including markets outside the crypto scope: FUD (Fear Uncertainty Doubt).
Now, crashes are sparked by FUD, but what makes each crash different is the cause of FUD. For the previous crash, there was a range of causes for its FUD at the beginning, but two of the main ones was the influence of the market from Elon Musk's tweets and a crypto ban/crackdown in China alongside other countries.
With the current crash, this would also apply, though Elon Musk has lately been quiet about crypto, so he would be excluded from this crash's cause. China is increasingly becoming strict on crypto, and so raises concerns on crypto and its users, including businesses and people who rely on crypto. Many people may think "Why is everyone so focused on China? Why not other countries?" and the answer to this is China is the powerhouse of almost every industry of the world, and that includes crypto. This would also be why there is a great focus on China outside crypto, especially businesses that most will have their production set in China due to cheap costs alongside other benefits, such as a high population for a high labour force, which also relates to cheap costs.
According to the University of Cambridge, 67.26% of BTC mining comes from China, which is more than two-thirds of BTC power. So then if China crackdowns on crypto, then it would affect the market deeply from the sheer dominance it holds, and this is what has happened in the current crash. For more on the BTC mining report from Cambridge, visit here: https://cbeci.org/mining_map.
Further Reading
be[in]crypto - What Changed in Crypto Markets While You Were Sleeping — June 22 - https://beincrypto.com/what-changed-in-crypto-markets-while-you-were-sleeping-june-22/
CoinTelegraph - China’s crackdown means Bitcoin is working, says crypto miner - https://cointelegraph.com/news/china-s-crackdown-means-bitcoin-is-working-says-crypto-miner
CoinTelegraph - ‘Say something, Elon Musk!’ Dogecoin sheds $70B in market cap since SNL - https://cointelegraph.com/news/say-something-elon-musk-dogecoin-sheds-70b-in-market-cap-since-snl