Is crypto losing its steam? The recent decline of major coins in the cryptocurrency market has raised concerns about the future of digital assets. The ongoing market sentiments and regulatory pressures have led to fears of a bleeding effect on the crypto sector. Does it mean there are dark clouds for the future? We find out.
Why Is There a Price Drop in Crypto Currency?
One of the major reasons for Bitcoin losing steam is the announcement by crypto giant Silvergate Bank to wind down operations and liquidate its bank amid regulatory pressures and the impact from the collapse of FTX. The firm is one of the two banks for the crypto industry, along with Signature Bank. This announcement lead to fear and speculation amongst investors, not willing to take risks. The decline of major coins appears to be linked with banking crisis, which is surely hurting the investors’ confidence in all assets that are risky.
Parth Chaturvedi, Crypto Ecosystem Lead, CoinSwitch told Gadgets 360: “With access to US banking routes getting more difficult for crypto players, trading liquidity remains shallow and, in turn stressing overall crypto markets. All eyes on upcoming Macro data next week, as a ‘risk-off’ sentiment would hurt crypto prices further. Also worth monitoring is the fallout from Silvergate and any further industry casualties that it brings along,” he added.
As many were hoping that the ongoing market scenario should not affect the crypto market; the analysis has not fallen correctly. Cryptocurrencies are definitely not exempted from the ongoing market scenario.
Market Analysis Bitcoin
With drama at the center, the new week has put lot of pressure on Bitcoin. Traders are faced with bearish volatility. This has resulted in Bitcoin as well as US dollar showing signs of stress and breaking out of its broader trading range. These has led to a nervous start to a week already filled with potential Bitcoin price volatility catalysts.
Bitcoin retreated to the lowest level since April 25 as concerns about the crypto market continued.
The major news in the cryptocurrency universe is the ongoing congestion in the industry that led to higher Bitcoin and Ethereum fees leading to volatility and drop in the price of cryptocurrencies.
Top 10 Tokens:
Let’s look at the list of top 10 cryptocurrencies with the market cap at the time of writing.
1. Bitcoin (BTC)
Market cap: $537.1 billion
2. Ethereum (ETH)
Market cap: $222.3 billion
3. Tether (USDT)
Market cap: $82.4 billion
4. Binance Coin (BNB)
Market cap: $49.0 billion
5. S. Dollar Coin (USDC)
Market cap: $30.2 billion
6. XRP (XRP)
Market cap: $22.1 billion
7. Cardano (ADA)
Market cap: $12.7 billion
8. Dogecoin (DOGE)
Market cap: $10.2 billion
9. Polygon (MATIC)
Market cap: $8.2 billion
10. Solana (SOL)
Market cap: $8.2 billion
It was exhilarating to watch the rebound and rise of Bitcoin, Ethereum, and Dogecoin to start the year. It seemed like the bull market rally with stupendous upside potential has once again raised concerns that financial situation with the ongoing market sentiments may continue to bleed into the crypto sector, leading to decline of major coins.
