Why is crypto market down today?
(note: the post contains data by CoinGape)
Despite many uncertainties, the crypto market was performing well, actually bullishly, until today. The market gained stability after a recovery period last month and the results of US employment rates. The US government added 272,000 jobs in May, a much higher number than any expectations and predictions. However, the ongoing political shifts and other causes led to market declining conditions.
As per the fear and greed index, the level of greed has declined today, followed by the decline in global market capitalization. The market cap is now at $2.47 Trillion after 2.82%, the result of individual cryptos fall. Almost every other cryptocurrency is following a downtrend today, and the crypto market heatmap is in red.
The biggest impact on the crypto market must have come from the EU Parliament election results. These results have influenced the sentiments of crypto users regarding the upcoming regulations and discussions in this industry. Additionally, the economic factors became another factor when the European Central Bank introduced the 25 basis points rate cut, which is good news, but economic growth might impact cryptocurrencies.
Also, the Bitcoin charts earlier exhibited the presence of the bear flag pattern, resulting in the price drop. Bitcoin has a major impact on the crypto market’s performance because of its dominance. The Bitcoin dominace has crossed the 54% mark, currently at 54.2% which is quite high. However, analysts don’t expect a continuous fall in Bitcoin price, which is good. But any further decline can bring the market even down as the Ethereum price is already struggling, and another major drop is not favorable for investors.
