By Lina Ibriz
The global cryptocurrency market capitalization collapsed to $1.21 billion, down 3.61% over the past day, according to data from CoinMarketCap). The prices of all major coins, including Bitcoin, have also fallen over the past 24 hours.
Bitcoin (BTC) price is again below the $30,000 level, dropping 3.23% in the last 24 hours. The price of Bitcoin on global exchanges thus fell to $29,557 this morning.
According to the Financial Express, cryptocurrency markets seem to follow the traditional market. The total volume of the cryptocurrency market is said to have shrunk in the past 24 hours by 10.89% to $61.95 billion.
The S&P 500 and Nasdaq also fell on Friday. Total DeFi volume was $5.45 billion, or 8.79% of the total 24-hour crypto market volume. The stablecoin volume was $52.48 billion, or 86.49% of the total 24-hour crypto market volume.
Meanwhile, Bitcoin’s dominance as the number one crypto asset has been intact at over 46% for several days, although experts believe the price of BTC has fallen as buyers remained on the sidelines. The general sentiment among crypto traders remains bearish, shows the Bitcoin Fear & Greed Index having moved deeper into “extreme fear” territory.
Reasons for a crash
Experts believe the crypto market is following a similar curve to the stock markets, while the odds of traders remaining bullish on cryptos are low, Financial Express reports.
« With US stocks enduring another day of retracement, crypto markets followed a similar course. With the high correlation between BTC and the S&P 500 index, the chances of traders remaining bullish on cryptocurrencies were lower“, explains Darshan Bathija, CEO and co-founder of the crypto exchange Vauld, quoted by the newspaper.
« With BTC falling below 30,000, the gains made over the past few days have been erased. Altcoins also saw a drop in price”he adds.
One of the reasons for the fall in crypto prices could also be the low-risk appetite of traders and investors, especially after the Terra (Luna) debacle.
“Bitcoin and most cryptocurrencies fell on Wednesday. Even though May was a tough month for cryptos, BTC had a brief rebound in the past week, but fell back to US$29,000 in the last 24 hours. This indicates a low appetite for risk among buyers. It remains to be seen how long the downtrend will continue to affect the market,” Edul Patel, co-founder and CEO of crypto investment platform Mudrex, told Financial Express.