Bitcoin
Why is the crypto market in decline today?
Despite many uncertainties, the crypto market has performed well, in fact bullishly, to date. The market gained stability after a period of recovery last month and the results of US employment rates. The US government created 272 thousand jobs in May, a number far exceeding any expectations and forecasts. However, ongoing political changes and other causes have led to declining market conditions. In this blog, we will discuss why the crypto market is in decline today and the possible reasons behind it.
General Crypto Market Conditions
According to fear and greed index, 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 the decline in individual cryptocurrencies. Almost all other cryptocurrencies are following a downtrend today, and the crypto market heat map is in red.
When analyzing the categories individually, the market cap of meme coins decreased by 3.38%, while the market cap of Solana networks decreased by 1.88%. Most importantly, the biggest decline occurred in the Gaming cryptocurrencies, where a drop of 5.5% is noticeable, followed by AI tokens with 3.16%. However, global trading volume rose to $83.34 billion after a 70% increase amid the market slump.
Top reasons why the crypto market declined today
The biggest impact on the crypto market is expected to have come from the results of the EU Parliament elections. These results influenced crypto users’ sentiments towards upcoming regulations and discussions in this sector. Furthermore, economic factors became another factor when the European central bank
introduced a 25 basis point rate cut, which is good news, but economic growth could have an impact on cryptocurrencies.
Furthermore, the Indian election results impacted the performance of the Indian stock market, the effect of which is also considerable on the crypto market. With predictable but not entirely satisfactory results, investors are scared, causing periods of consolidation for both markets.
Lastly, Bitcoin charts previously displayed the presence of the bearish flag pattern, resulting in the price falling. Bitcoin has a huge impact on the performance of the crypto market due to its dominance. Bitcoin dominance has surpassed the 54% mark, currently at 54.2%, which is quite high. As BTC Price falling to $67,779, the rest of the cryptocurrencies also declined. However, analysts do not expect a continued drop in the price of Bitcoin, which is good. But any further decline could cause the market to fall further, as the Ethereum Price it is already in trouble and another major drop is not favorable to investors.
Keep reading Top 10 Cryptocurrencies That Outperformed Bitcoin This Year