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Why are Bitcoin and the cryptocurrency market down today?
The global cryptocurrency market begins the week with a significant downtrend. According to data from CoinMarketCap, the total value of the cryptocurrency market decreased by 2.76% to $2.29 trillion over the past 24 hours.
Noticeably, the overall investor sentiment surrounding the market, as measured by the Cryptocurrency Fear and Greed Index, has taken a hit, dropping from 55 points (greed) yesterday to 51 (neutral) today. This means that investors’ confidence in the market is shaky as they experience mixed sentiment Alternative data. As a result, approximately $160 billion in net wealth has been lost over the past seven days.
Total trading volume, however, increased by 73.94% to $54.35 billion in the past 24 hours, with the volume of all stablecoins accounting for approximately 91.14% of the total stablecoin market volume. cryptocurrencies.
Bitcoin leads the global cryptocurrency market into recession
In the week starting June 24, Bitcoin, the largest cryptocurrency by trading volume, recorded a bearish movement after its price fell below the $62,000 mark. According to data from CoinMarketCap, BTC is now trading at $61,408, signifying a decline of 4.62% over the past day. Interestingly, the trading volume recorded over the past day skyrocketed by 191% to $23.2 billion.
Previously, Coinfomania had reported that several expert cryptocurrency analysts had predicted that the Bitcoin price could drop to $60,000, with the statements supported by a clear formation pattern on the coin price chart. With this latest mistake, it looks like the prediction will come true sooner rather than later.
Source: CoinMarketCap
Furthermore, the altcoin market followed this decline. Ethereum, the second-largest cryptocurrency by market capitalization, fell 5.44% in the past 24 hours to settle at $3,308. In terms of trading volume, ETH has seen an increase of 138% in the recorded time.
Similarly, other major altcoins such as Binance Coin (BNB), Solana (SOL) and Ripple (XRP), have recorded drops between 2.7% and 6% in the last day, as a result, they are now changing hands at $566.66, $126.21. and $0.474 respectively. Toncoin (TON) and Cardano (ADA) fell by 5.82% and 3.01% respectively in the last 24 hours.
In the memecoin market, the first and second largest tokens, Dogecoin (DOGE) and Shiba Inu (SHIB), have slipped 6.30% and 6.86% in the past 24 hours to trade at 0, respectively. $1174 and $0.00001687. With the cryptocurrency market landscape looking like a bloodbath, investors are wondering what caused this outcome. Let’s take a look.
Why the cryptocurrency market is declining today
According to observations, several factors influenced the overall price decline in the cryptocurrency market. Some of them include;
Decline in whale transactions
A significant decline in large transactions has recently been observed. Over the past two days, the number of whale transactions has decreased by a notable 42%, from 17,091 to 9,923. The reduction in activity among large investors sent a bearish wave through the market.
Spot ETF outflows
Mouthwatering withdrawals from these investment products were observed last week. As a result, it has contributed to the overall bearish sentiment in the market.
Macroeconomic events
Some macroeconomic events such as ISM manufacturing data, FOMC meeting release, employment and unemployment rate data and others are expected in early July. As investors continue to wait for this data, the market is experiencing a sharp correction ahead of expected dates.
Large withdrawals from derivatives exchanges
Some traders have adopted a “risk aversion” strategy, moving assets away from derivatives exchanges to reduce their exposure. The Interexchange-Flow-Pulse (IFP) indicator, which tracks the flow of Bitcoin between derivatives and spot exchanges, turned red, indicating a loss of confidence in the market.