“Ether also declined significantly, dropping to 56th place with a market cap just above $300 billion and losing 14.5% of its value.”, — write: www.coindesk.com
The move came after its price dropped sharply from around $90,000 to $78,500, a loss of more than 11% over the last 7-day period. The recent price decline comes amid geopolitical tension, a breakdown in the precious metals rally, the nomination of a “Hawkish” next Federal Reserve chair and a partial government shutdown.
Bitcoin falling out of the top 10 assets by market cap is significant because, in recent years, it remained in the list as prices remained elevated. Just on Oct. 7, when the prices hit a new all-time high, it was in 7th place. Earlier last year, it even made it to the top five list, surpassing tech giants such as Google and Amazon.
For comparison, during October’s record price, bitcoin briefly traded above $126,000 and approached a $2.5 trillion valuation.
The selloffThe recent decline in prices was partially the result of the US dollar’s strength.
Trump’s nomination of Warsh, a veteran of the 2008 financial crisis with Wall Street experience that’s known for favoring higher real interest rates and a smaller Fed balance sheet, led to the US dollar’s biggest rally since May.
That led to a retreat in not just bitcoin but also the precious metals rally, which saw gold plunge 9% in a single trading session to just under $4,900, while silver dropped an astounding 26.3% to $85.3.
Gold is still the largest asset by market capitalization despite its recent drawdown, with a market cap of $34.1 trillion. It’s followed by silver’s near $4.8 trillion market cap. The largest company by this metric remains NVIDIA, at $4.6 trillion, followed by Alphabet at $4.08 trillion.
Ether ETH$2,434.51 also took a hit, falling to 56th place and now with a market capitalization just above $300 billion, after the cryptocurrency lost 14.5% of its value in a week. Previously, it was among the top 50 assets by market cap, and before the October 10 crash, it was near the top 25.
The second-largest cryptocurrency is now worth less than companies such as Caterpillar, Inditex, Coca-Cola, and Cisco.