Crypto market drops $20 billion in one day

The total market capitalization of all cryptocurrencies fell from $383 billion, down to as low as $363 billion earlier today, as $20 billion was wiped off the market. Since then, the market has recovered somewhat and is now hovering around the $369 billion mark.

The average cryptocurrency is now down just over 3.6% in the last day.

Today's dip comes after almost a week of near solid growth, during which the size of the market increased from $346 to as much as $387 billion.

Practically all major cryptocurrencies are now in the red today, but some are faring worse than others. Among the top 10 cryptocurrencies by market capitalization, Bitcoin (BTC) is currently holding up the best with a loss of 3.3% today, but has fallen back under $12,000 to reach $11,808, whereas Ethereum (ETH) is close behind at a 3.4% loss and hovering around the $414 price point.

Meanwhile, most other top ten cryptocurrencies are showing a 24-hour loss of more than five percent, with XRP, Bitcoin Cash (BCH), and Bitcoin SV (BSV) hit the worst and down 6-7% apiece in the last day.

Despite the dip, alternative.me's Crypto Fear & Greed Index still sits at 80, indicating the market remains in a state of extreme greed—in other words, feeling bullish. Likewise, most of the market is still strongly in the green over the 7-day and 30-day timescales, suggesting the bull market hasn't run out of steam just yet.

This recent dip appears to have disproportionately affected mid-to-large cap cryptocurrencies. According to CoinGecko's list of cryptocurrencies in the decentralized finance (DeFi) niche, eight out of the 20 largest DeFi coins are still in the green in the last day, compared to just one out of 20 when considering the top 20 cryptocurrencies by market capitalization. DeFi is still having its moment.