It’s been a few days since the market entered the new month from the April downturn. The cryptocurrency market has started to recover slightly, but it still has a long way to go before the global market cap is only $2.36 billion and the trading volume is $72.72 billion.
In this blog, let’s discuss the possibility of the cryptocurrency market being stable again and its recovery date.
Why did the cryptocurrency market fall?
April was by far the slowest month of the year, with all cryptocurrencies suffering heavy losses after the huge gains in the previous months. Analysts believe that high inflation and unemployment have dragged down the US economy, affecting the entire cryptocurrency market.
Moreover, the performance of Bitcoin spot ETFs throughout April was also poor. The percentage of outflows was much higher than the inflows, which is worrying.
Bitcoin ETFs have seen huge gains since their launch, but they were halted in April, causing the price of Bitcoin to fall. However, this did change in May, with Grayscale Bitcoin Trust (GBTC) alone witnessing $65 million in inflows, while the total inflows were about $378.3 million.
Cryptocurrency market recovery may start on May 15
Kryptanium Capital founder Daniel Yan shared his predictions for the stability of the cryptocurrency market. According to his analysis, the market may continue to show unpredictable behavior until mid-May, after which better stability may emerge. This is because the Consumer Price Index (CPI) data will be released in 15 days, which may change the dynamics of the cryptocurrency market.
The current statement of the Federal Reserve also shows support. Withdrawing money from the economy will help promote various transactions, including cryptocurrency transactions. More importantly, the recovery of Bitcoin prices is the biggest sign of increasing market stability.
As of the time of writing, the price of Bitcoin is $63,600 and the trading value is $28,387,536,640, a surge of 29% from yesterday. Bitcoin once fell to a low of $56,600, but it has recovered significantly in the past few days. Meanwhile, the price of Ethereum has also recovered and is currently trading around $3170. Ethereum, together with Bitcoin, accounts for more than half of the market share, so the growth of the entire market is also obvious.
The end of May will also witness the results of the SEC on Ethereum spot ETF. Ethereum bully rally can start with a positive result from the US regulator. Its impact will also be reflected in the cryptocurrency market. Therefore, if the result is positive, it will be a celebration in the market. The overall upward trend will also follow
