A warning about the ‘Domino effect‘ as the cryptocurrency sector loses $200 billion

<p>Hundreds of billions of dollars have been knocked off the value of cryptocurrencies in a market-wide catastrophe that experts are saying will have a "domino effect."</p> <p>Hundreds of billions of dollars have been wiped off the value of cryptocurrencies in a market-wide crash that has pushed bitcoin's worth below $60,000.</p> <p>Other big cryptocurrencies, including ethereum, Binance's BNB, solana, cardano, and Ripple's XRP, have all suffered losses of up to 10%.</p> <p>The whole cryptocurrency market cap decreased by more than $200 billion overnight, to about $2.6 trillion, after briefly approaching $3 trillion during last week's record-breaking run – with bitcoin reaching a new all-time high of $69,000.</p> <p>Although the reason for the precipitous decline is unknown, several factors appear to be forcing investors to pause for thought.</p> <p>These include a further crackdown on bitcoin mining in China, the rejection of a spot bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC), and long-term investors liquidating their holdings.</p> <p>However, cryptocurrency is notoriously volatile, and analysts believe it is too early to know whether the recent dip signals the beginnings of a market reversal or only a correction en route to new all-time highs.</p> <p>Bloomberg quotes an analyst as warning that fresh lows could emerge as a "domino effect" takes hold.</p> <p>"After many days of advances that saw Bitcoin hover near its all-time high while several other cryptocurrencies set new records, we are seeing a huge pullback," said Walid Koudmani, an analyst at XTB Market.</p> <p>"The market's extraordinary volatility might trigger a domino effect if additional negative news emerges, pushing prices to new lows."</p> <p>Other analysts believe the market is on track to set new all-time highs in the coming weeks, referring to the recent decline as a "correction."</p> <p>"Bitcoin's sell-off has sent it back to levels last seen ten days ago, which is hardly a crash but more of