The global crypto market begins the week in a significant downtrend. According to data from CoinMarketCap, the total cryptocurrency market value has declined by 2.76% to $2.29 trillion in the last 24 hours.
Noticeably, the general sentiment of investors surrounding the market as measured by the crypto fear and greed index, has taken a hit, dropping from 55 points (greed) yesterday to 51 (neutral) today. This means that investorsâ confidence in the market is shaky as they experience mixed sentiment per Alternative data. Consequently, about $160 billion was lost in net wealth in the last seven days.
The total trading volume, however, has surged by 73.94% to $54.35 billion in the last 24 hours, with the volume of all stable coins representing about 91.14%Â of the total crypto market volume.
Bitcoin Leads Global Crypto Market in Downturn
In the week starting June 24, Bitcoin, the largest cryptocurrency by trade volume, has experienced a bearish movement after its price dropped below the $62k mark. According to data from CoinMarketCap, BTC now trades at $61,408, signifying a 4.62% decline over the last day. Interestingly, the trading volume recorded over the last day has skyrocketed by 191% to $23.2 billion.
Previously, Coinfomania reported that several expert crypto analysts had predicted that the price of Bitcoin might drop to $60,000, with the statements backed by a noticeable forming pattern on the coin price chart. With this latest slip, it looks like the prediction will be happening sooner rather than later.
Source: CoinMarketCap
Also, the altcoin market has followed this decline. Ethereum, the second-largest cryptocurrency by market cap has dropped by 5.44% in the last 24 hours, to trade at $3,308. In terms of trading volume, ETH has witnessed a 138% increase within the recorded time.
Similarly, other top altcoins like Binance Coin (BNB), Solana (SOL), and Ripple (XRP), have seen drops between 2.7% to 6% over 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) have declined by 5.82% and 3.01% in the last 24 hours.
In the memecoin market, the first and second largest tokens Dogecoin (DOGE), and Shiba Inu (SHIB) have slipped by 6.30% and 6.86% in the last 24 hours, to trade at $0.1174, and $0.00001687 respectively. With the overview of the crypto market looking like a bloodbath, investors are wondering what has caused this outcome. Let us take a look.
Why the Crypto Market is Down Today
According to observations, several factors have influenced the general price drop in the crypto market. Some of them include;
Decline in whale transactions
A significant decline in large transactions has been observed recently. In the last two days, the number of whale transactions has dropped by a notable 42%, from 17,091 to 9,923. The reduction in activity among huge investors has sent a bearish wave across the market.
Spot ETFs Outflows
Last week, mouthwatering withdrawals were observed from these investment products. As a result, it has contributed to the overall bearish sentiment in the market.
Macroeconomic Events
Some macroeconomic events like ISM manufacturing data, FOMC meeting release, Â jobs, and unemployment rate data, and others are due in early July. As investors continue to wait for these data, the market is experiencing a sharp correction ahead of the dates.
Large Withdrawals from Derivative Exchanges
A ârisk-offâ strategy has been adopted by certain traders, who move assets away from derivative exchanges to lower their exposure. The Interexchange-Flow-Pulse (IFP) indicator, which monitors the flow of Bitcoin between derivative and spot exchanges, has turned red, indicating a loss of trust in the market.
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