![Bitcoin](https://img.etimg.com/thumb/msid-82767838,width-650,height-488,imgsize-201885,resizemode-75/bitcoin.jpg)
The value of more than 7,000 tokens tracked by CoinGecko has shrunk more than $600 billion in the past week to $1.9 trillion. Bitcoin, the largest cryptocurrency, slid some 11 per cent Wednesday to break below $40,000 and is now about $25,000 off its record high set in April.
The $40,000 mark is a “critical make-or-break pivot level” for Bitcoin and a decline to just below $30,000 isn’t out of the question, Jeffrey Halley, senior market analyst at Oanda, wrote in a note.
Here’s a snapshot of the crypto retreat:
Market Value
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![Crypto crash Crypto crash](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
Early in April, the value of cryptocurrencies breached $2 trillion for the first time, doubling in about two months on optimism institutional investors were increasingly interested. The current weakness has erased over $600 billion.
Breaking $40,000
![Bitcoin Bitcoin](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
Bitcoin tested its 200-day moving average, and its discount to the 120-day average is the biggest since last year, according to Mike McGlone, a commodity strategist at Bloomberg Intelligence in New York. He sees the Bitcoin price settling around the 2021 average of approximately $49,000.
Futures
![Bitcoin futures Bitcoin futures](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
In Bitcoin futures, technicians see a bearish head-and-shoulders pattern, which could point to more weakness ahead.
![Bitcoin - Gold Bitcoin - Gold](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
The ratio of Bitcoin’s price relative to gold has dropped to the lowest since early February. That’s come amid greater caution about speculative assets as well as the post-pandemic economic recovery. Bitcoin’s proponents argue it’s a modern-day store of value, a claim belied by the token’s volatility.
Ether Trade
![Ether - Bitcoin Ether - Bitcoin](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
After Bitcoin pulled back from a mid-April high, an ongoing rally in Ether -- the second-largest cryptocurrency -- drew attention. But that has also stalled. Chris Weston, head of research at Pepperstone Group Ltd. in Melbourne, wrote in a note Monday that he was closing a short Bitcoin/long Ether trade as the “dust really needs to settle.”
Largest Fund
![Bitcoin fund Bitcoin fund](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
The Grayscale Bitcoin Trust, the largest Bitcoin fund, is sitting on close to a record discount to net asset value. That gap could disappear if it converts as planned to an exchange-traded fund. However, risks for a wider discount include uncertainty over whether U.S. officials will ever allow Bitcoin ETFs.