After a strong recovery in recent days, the global cryptocurrency market was trading in the red on Thursday. Bitcoin, the flagship currency, dragged down to $22,976, after rising to $24,000 on Wednesday.
The leading cryptocurrency, Bitcoin, dropped 2.96 percent while Ether, the second largest cryptocurrency in terms of market capitalization, fell 4.71 percent to 1,509 over the previous day, according to Coindesk data at 16:04 IST.
Other popular altcoins, which tend to move in tandem with Bitcoin, also fell. Shiba Inu, the second-largest meme coin, fell 8.76 percent to $0.000012 however the most followed meme coin Dogecoin dropped 7.88 percent to $0.068862.
The global cryptocurrency market cap decreased from 3.93 percent to $1.03 trillion in the last 24 hours. On the flip side, the total cryptocurrency trading volume decreased 13.77 percent to $90.27 billion.
However, out of a total market cap, bitcoin's dominance is 42.56 percent, an increase of 0.33 percent over the day, as per CoinMarketCap data at 16:21 IST.
In recent news, Tesla, an electric car maker, sold $936 million worth of bitcoin in the second quarter, more than a year ago.
On Tesla's earnings call, Musk said the primary reason for the sale was uncertainty about lockdowns due to COVID-19 in China, which have created production challenges for the company.
"It was important for us to maximise our cash position," Musk said. "We are certainly open to increasing our bitcoin holdings in future, so this should not be taken as some verdict on bitcoin. It's just that we were concerned about overall liquidity for the company."
Musk added that Tesla did not sell any of its dogecoin, a meme-based cryptocurrency that he has touted.