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Why is the cryptocurrency market declining today?
Despite many uncertainties, the cryptocurrency market has performed well, even bullishly, to date. The market has gained stability after a period of recovery last month and the results of US employment rates. The US government created 272,000 jobs in May, a number far higher than any expectations and forecasts. However, ongoing political changes and other causes have led to worsening market conditions. In this blog, we talk about why the cryptocurrency market is declining today and the possible reasons behind this.
General conditions of the cryptocurrency market
According to indicative of fear and greed, the level of greed decreased today, followed by the decline in global market capitalization. The market capitalization is now at $2.47 trillion after 2.82%, the result of declines in individual cryptocurrencies. Almost all other cryptocurrencies are following a downtrend today and the heat map of the cryptocurrency market is in the red.
Breaking down individual categories, the market cap of meme coins decreased by 3.38%, while the market cap of Solana Networks decreased by 1.88%. More importantly, the largest decline occurred in Gaming cryptocurrencies, where a decline of 5.5% is noted, followed by AI tokens with 3.16%. However, global trading volume rose to $83.34 billion, following a 70% increase during the market crash.
Top Reasons Why Cryptocurrency Market Declined Today
The biggest impact on the cryptocurrency market must have come from the results of the European Parliament elections. These findings have influenced cryptocurrency users’ feelings regarding upcoming regulations and discussions in this area. Furthermore, economic factors have become another factor when the European Central Bank
introduced the 25 basis point rate cut, which is good news, but economic growth could impact cryptocurrencies.
Furthermore, the results of the Indian elections have affected the performance of the Indian stock market, the effect of which is also notable on the cryptocurrency market. With the results predictable but not entirely satisfactory, investors are spooked, causing periods of consolidation for both markets.
Finally, Bitcoin charts previously showed the presence of the bear flag pattern, resulting in a drop in prices. Bitcoin has a major impact on the performance of the cryptocurrency market due to its dominant position. Bitcoin dominance has crossed the 54% mark, currently at 54.2%, which is quite high. With the BTC price dropping to $67,779, the rest of the cryptocurrencies also fell. However, analysts do not expect a continued decline in the price of Bitcoin, which is a good thing. But any further decline can send the market even lower Ethereum price it is already in trouble and another sharp decline is not good for investors.
Keep reading Top 10 Cryptocurrencies That Outperformed Bitcoin This Year