FX.co ★ Market correction or temporary downturn: major cryptocurrencies sank after Bitcoin's record

Over the past day, the cryptocurrency market has been actively growing in value against the background of a Bitcoin record. As a result, the total cryptocurrency market capitalization reached $1.69 trillion as of February 22. However, a negative agenda and a sharp decline in Bitcoin triggered a drop in prices for major digital assets.

Bitcoin reached a record price of $58,000, but today, it dropped sharply to $53,400 and continues to fall. Other digital assets also show deplorable performance. There are several reasons for the obvious market downturn: firstly, several days ago, Elon Musk spoke out quite categorically about cryptocurrency as not the most reliable way to invest money. It is worth noting that the word of a billionaire is not yet powerful enough to collapse the quotes of the entire market.

The second reason is more logical and related only to Bitcoin. Financial giant JPMorgan published a report stating that the value of the main cryptocurrency could plummet. This is possible if investors turn away from the Tether stablecoin. The company has not yet conducted an independent audit, which heightens concerns about the company's financial reserve. All this can destabilize the situation on cryptocurrency exchanges and cause panic, which will lead to an uncontrolled fall in the price of bitcoin.

In addition to Bitcoin, Ethereum is also showing a significant decline. After an all-time high of $2,000, the coin held at $1,900, but then steadily dropped to $1,760. And no prerequisites for further growth have yet been observed.

Litecoin was confidently holding at $240, but soon the coin slipped to $204. Despite the downturn, this altcoin shows certain prerequisites for rapid growth and has previously demonstrated freedom from market fluctuations.

Oddly enough, the XRP token is the only coin that showed growth on February 22. This comes amid news that Ripple is partnering with central banks to develop new digital assets. However, the situation with the token is unstable: in the morning, the coin held positions at the level of $0.640, but then fell sharply to $0.580. After a slight increase, XRP fell back to $0.565.

Despite the general downturn in the market, the main cryptocurrencies will hold onto safe positions and resume growth. Considering the supply and demand in the market, the growth of the quotes on the exchanges will last until the end of February, after which, most likely, a wave of correction will overwhelm the main altcoins. In connection with the report by JPMorgan, it is not entirely clear what will happen to Bitcoin. Everything will rest on two main factors: investor behavior and the official position of Tether.