Crypto markets suffered severe losses on Monday, January 11, 2021, with the total market capitalization dropping below $1 trillion to $823 billion, a 9.9% decline in 24 hours. After reaching a high of $41,056 on Sunday, Bitcoin plummeted more than 25%, hitting a low of $30,261 — the largest single-day drop of the year.
Bitcoin Leads the Decline, Altcoins Also Hit
At press time, Bitcoin was trading around $32,200 with a 24-hour trading volume of $38 billion. Ethereum also took a major hit, falling 27% to $933, after surpassing $1,300 the previous day. XRP dropped 15% to $0.27, while Bitcoin Cash (BCH) fell 30% from its 2021 high of $625 to $413.
Despite the broad sell-off, a few tokens managed to gain: Stakenet (STK) led with an 91% increase, followed by ZEN, MXC, and DAG. On the losing side, CTXC plummeted 47%, with DMT, BCD, RCN, and MKR also suffering deep losses.
CME Futures Gaps Emerge, Analyst Remains Bullish
Following Bitcoin's steep decline, two price gaps appeared on the CME Bitcoin futures chart: a downside gap between $23,670 and $26,645, and an upside gap between $39,165 and $40,535. Such gaps often form during volatile markets and may become targets for future price closure.
Despite the short-term carnage, eToro analyst Simon Peters told investors that the market remains healthy. He noted that institutional investment continues, and the amount of Bitcoin held on exchanges is decreasing as investors move tokens to wallets. Glassnode data shows an increasing level of illiquid Bitcoin, indicating more holders are HODLing. Peters expects Bitcoin to reach $70,000–$90,000 by the end of 2021, though he acknowledged there will inevitably be bumps and retracements along the way.