After a brief recovery, the cryptocurrency market experienced a new setback characterized by a decline in overall trading volume to a multi-week low of $63.63 billion. This economic downturn was due to a 17% drop in total trading volume within one day, as well as a decline in the overall market capitalization of the crypto market to $2.3 trillion, and bullish sentiment on the fear and greed index. This is emphasized by the transformation of
cryptography market outlook
The recent downtrend has had a negative impact on Bitcoin and Ethereum, with Bitcoin down 2% to $62,309.95 and Ethereum down 2.2% to trade at $2,999.41. This downward trend seems to be continuing and has affected other cryptocurrencies as well.
On May 7, the market capitalization of cryptocurrencies was flat at $2.35 trillion, with Bitcoin up slightly at $63,550. However, other major cryptocurrencies such as Ether, XRP, Dogecoin, Cardano, Toncoin (TON), and Avalanche experienced smaller declines ranging from 0.5% to 2.5%. These declines are primarily due to increased uncertainty in traditional markets.
Factors leading to virtual currency free fall
Here are some of the factors that contributed to today's cryptocurrency market decline. The market has been stagnant in recent weeks, with little upside movement. However, today's decline was caused by new regulatory concerns in the crypto market. Declining Bitcoin futures ETF and foreign exchange inflows are further deteriorating investor sentiment, leading to a bearish situation.
SEC destroys crypto market
First, regulatory issues have recurred, spooking investors. The SEC has given Robinhood ample warning of securities law violations. In response, Robinhood stopped supporting certain cryptocurrencies that the SEC claims are securities. This is a situation similar to what Robinhood has been in before when other exchanges faced regulatory issues.
Bitcoin future ETF falls below
The market has high expectations for the Hong Kong Bitcoin and Ethereum ETF. However, outflows of Bitcoin futures ETFs over the past four weeks have weakened the market. The leak affected the price and popularity of Bitcoin, with the $284 million leak impacting the market.
Bitcoin transaction inflow fees are the lowest in 10 years
Bitcoin inflows into exchanges, the lowest in a decade, have fallen to levels last seen in 2015, signaling a change in broader market trends. Long-term holders have stopped selling and are instead choosing to re-accumulate their Bitcoin, potentially signaling a transition to an accumulation phase.
Analysts say BTC will plummet
Some experts believe that Bitcoin could fall below $50,000 before hitting new highs again. They believe the market is entering a phase where people are accumulating Bitcoin, which could mean more ups and downs in the future and opportunities for investors to make profits.
