The global cryptocurrency market cap has lost $40 billion over the past 24 hours amid the sustained market-wide turbulence that has seen several assets, such as Bitcoin (BTC) and Ethereum (ETH) drop by shocking margins.
This downtrend, which started on Jan. 12 following the initial hype surrounding the spot Bitcoin ETF approval, has endured amid several selloffs from institutional and retail investors alike. It has led to a slew of selloffs that has compounded into panic across the market.
As a result, market sentiment has dipped significantly, per data from Santiment. Santiment’s total social volume metric suggests that, while social activity has increased over the past week, the crypto community has focused primarily on buy and sell mentions.
The market faced a considerable setback yesterday following Bitcoin’s collapse below the pivotal $40,000 support threshold. The asset had defended the $40,000 level since the start of the year until Jan. 22, when it slumped to $39,700.