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Bearish Outlook for Crypto Assets: An Imminent Reversal?
Crypto assets saw a sharp decline today as macroeconomic conditions turned negative. The losses of most assets are now in their second day, with Bitcoin (BTC) and altcoins still in the red zone. These outflows have collapsed market capitalization and led to liquidations and a decline in decentralized finance (DeFi) numbers.
At the time of writing, the cryptocurrency market cap stands at $2.67 trillion, down 1% over the past 24 hours. Overall losses appear smaller in addition to inflows
meme coins while the most important assets saw outflows. Although intraday trading saw a slight recovery, trading volumes and on-chain activity declined. Daily trading volumes currently stand at $91.3 billion.
Will Crypto Assets Recover?
Despite the bearish outlook, market analysts suggest a trend reversal is gaining traction. This can be seen in midday trading as well as inflows into new meme coins. As macro factors turn positive, a resurgence is expected among major crypto assets. Digital assets have seen outflows Bitcoin price it slipped below $70,000, ushering in sideways trades and liquidations.
Last week, the asset’s price surpassed $71,500, with bulls anticipating higher inflows ahead of the recent correction. The fall in Bitcoin price is not the only bearish factor in the market as the US Department of Labor report dismissed the possibilities of interest rate cuts, analysts say.
Rate cuts are a major driver of inflows into the digital asset market because rising rates will see investors move funds away from risky assets. If these sentiments turn green, bulls expect a major market swing higher.
Market drop today
From Bitcoin, altcoins and meme coins, the market has seen huge outflows. While Bitcoin losses were reduced to 1%, Ethereum recorded outflows of 2% with its price at $3,677. Other altcoins such as Solana and Ripple recorded outflows of 4%, while Toncoin and Cardano both recorded losses of 3%. Major meme coins like Dogecoin and Shiba Inu saw larger outflows, even as newer assets posted gains. The stock market stalled on June 7 amid bearish sentiments.
Read also: Crypto Trader Earns $2.4 Million With 12 Meme Coins: Here’s More
David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and has an eye for the latest news. Staying up to date on trends, David has reported in several niches including regulation, partnerships, cryptocurrencies, stocks, NFTs, etc. Away from the financial markets, David cycles and rides horses.