Why are cryptocurrencies falling today? Surfaces of potential opportunity zones

The global cryptocurrency market we have seen a notable decline, while Santiment data shows that most tokens are in the opportunity zone.

According to data from CoinGecko, the capitalization of the global cryptocurrency market has collapsed by 4.1% in the last 24 hours and currently stands at $2.49 trillion. The total daily trading volume, however, increased by 16%, reaching $99.1 billion.

Global cryptocurrency market capitalization | Source: CoinGecko

Increased trading volume usually leads to increased volatility in the market.

Furthermore, the main cryptocurrencies, Bitcoin (Bitcoin) and Ethereum (ET), decreased by 3.5% and 2.6% respectively.

At the time of writing, BTC is trading at $64,250 and ETH is hovering around $3,150.

It is important to note that Bitcoin ETFs saw an outflow of $120.6 million over the past day, according to data from Farside Investors. The BlackRock IBIT Bitcoin ETF saw a day of zero inflows for the first time since the ETFs launched in the US

Additionally, the Grayscale Bitcoin Trust (GBTC) recorded a net outflow of $130.4 million on April 24. This movement, once again, could be one of the main reasons behind the market-wide bearish sentiment.

On the other hand, Santiment data shows that more than 85% of the assets listed on the platform are located in the opportunity zone.

The ratio of market value to realized value (MVRV) of assets on one-month, three-month and six-month cycles triggered a buy signal, the market intelligence platform shared in an X post.

However, “there is a growing fear spreading among the crowd after all these drops in market capitalization,” while Santiment adds that “buy the dip” have skyrocketed across social media platforms, dominating the 35.97 % of total crypto conversations.

Social volume for “buy the dip” | Source: Santimento

Most of the social activity comes from Reddit and X while Telegram and Bitcointalk have a smaller share, according to Santiment.

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