Following another red candle day for Bitcoin, the market capitalization for the King of Crypto has dipped below $1 trillion again.
This is the third major correction of this bull market, and it looks like it is deepening with prices already going down 12.5% from the ATH of $60,100 that was recorded less than two weeks ago.
At the moment, the Bitcoin market capitalization is at $980 billion. It has dropped by $140 billion over the previous week alone.
Some Were Wrong, Some Were Right
Just a few days ago, analyst Willy Woo wrongly predicted that the total capitalization won’t fall back below $1 trillion again:
“$1T is already strongly supported by investors. I’d say there’s a fair chance we’ll never see Bitcoin below $1T again.”
The Bitcoin market cap passed $1 trillion on February 19th but didn’t stay there for too long, falling back below it after only four days. The market cap reached that milestone again on March 9th, where it remained until today.
For the entire crypto ecosystem, the market capitalization currently stays at $1.65 trillion, representing a fall of 9.8% ($180 billion) since March 22nd.
Profit-taking may be an important factor in this pullback, as analyst Josh Rager suggests, stating that unrealized profits aren’t realized until they’re in the bank.
He also referenced Michael Saylor, the CEO of MicroStrategy, who bought quite a lot of Bitcoin these months, for his company:
“Don’t try to act like Saylor won’t take profits eventually, cause he will along with every other fund on the planet. Then they’ll buy back lower.”
Glassnode has predicted that the current situation is similar to that of the second half or later stages of a bull market. Similarly, CryptoQuant looked at Bitcoin flows to and from exchanges and predicted that it may take a while to get another leg up when it comes to demand and supply.