The cryptocurrency market is down again, losing more than $400 billion worth of investor wealth in the past 24 hours.

The world’s two largest cryptocurrencies are down 18% at the time of writing and the majors are moving to critical support levels.

The latest market correction comes with the spread of fear of the new mutated Corona “Omicron” throughout the global market.

While US stock markets remained under pressure over the past week, the repercussions were seen throughout the cryptocurrency market.

At press time, Bitcoin is trading at $47,200 with the market cap dropping below $1 trillion for the first time in two months.

The recent drop in bitcoin prices comes as the total balance of bitcoin accumulating addresses has seen a sharp decline.

Read:Crypto industry affected by Bitcoin’s break of $20,000… Highlights and predictions

Besides, the warning signs of the recent price correction were clear based on the activity of the trading platforms.

Data analytics platform Santiment reported that bitcoin inflows to exchanges were slowly outpacing outflows.

Earlier on Thursday, December 2, Santiment noted the following statement:

Bitcoin inflows to trading platforms have significantly outpaced outflows, as FUD goes hand in hand with the surge in coronavirus fears and makes traders consider selling their coins.

On Wednesday, there were 10,422 bitcoins moved to exchanges.

More than $200 billion eroded from the altcoin space:

Typically when Bitcoin pulls back it triggers a spiral effect, where the correction in the altcoin space is often as or more severe than Bitcoin.

The price of the world’s second largest cryptocurrency Ethereum is down 14% below the critical support levels of $4,000.

All of the top 20 cryptocurrencies were corrected in varying proportions between 15-25%.

Even the best-performing cryptocurrencies in the past week such as Terra (LUNA) and Polygon (MATIC) are down 20% and 15%, respectively.

Overall, the altcoin space has been able to moderate relatively after the sideways period of bitcoin over the past few weeks.

Read:Binance adds BUSD cryptocurrency to its lending program with up to 10% interest

Currently, the bears seem to have absolutely taken control of the market so far.

It will be interesting to see if the bounce is quick or if we are headed for a more deeper correction.

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