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Why are cryptocurrencies falling today? The cooling of the market
The global crypto ecosystem has witnessed a notable decline after recording consecutive green days over the past month.
On March 5, Bitcoin (Bitcoin) reached a new all-time high of $69,170 with a total market capitalization of over $1.4 trillion. However, the flagship cryptocurrency fell below the $60,000 mark as the market began to cool.
BTC Price – March 5 | Source: Santimento
CryptoQuant’s head of research, Julio Moreno, showed a chart on X indicating Bitcoin’s heat map since the beginning of the year. When BTC crossed the $60,000 mark, data showed that the leading digital currency was in an overheated zone.
Furthermore, following the Bitcoin price decline, also the capitalization of the global cryptocurrency market refused by 1.4% in the last 24 hours, going from $2.68 trillion to $2.58 trillion.
On the other hand, according to CoinGecko, daily cryptocurrency trading volume increased by 27%, reaching $317 billion in the last 24 hours.
Second data provided by Santiment, many users on X and Reddit are currently debating holding on to their crypto assets during the recent price drop. Some users, according to the market intelligence platform, believe that the drop in prices could be the “moment” to “buy” Bitcoin and are aiming for a further rise in prices.
Additionally, data from Santiment shows that Bitcoin is currently hovering between neutral and slightly bullish investor sentiment at the current price.
Despite the decline of the entire market, Shiba Inu (SHIB) is still in the bullish zone, according to Santiment. Specifically, SHIB registered a rally of 230% in the last seven days and has reached levels not seen since the end of 2021.