Crypto Market Facing Uncertainty as Capitalisation Drops
The crypto market has experienced a 3.3% decrease in the last 24 hours, bringing the total capitalisation down to $2.3 trillion. This level of capitalisation has not been seen since April 19th, raising concerns among investors. The market trend took a sharp turn downwards last Wednesday, and if it continues to fall below the previous local lows of $2.2 trillion, a confirmed downtrend may be on the horizon.
Bitcoin Struggles to Maintain Momentum
Bitcoin is currently facing challenges as it failed to surpass the 50-day moving average last Tuesday. With the price hovering around $62.2K, the leading cryptocurrency is trading at the lower end of its range, indicating a potential test of the $60K support level. The market’s ability to attract new buyers will be crucial in revitalising the overall crypto market, but there is a significant selling pressure, including from miner stocks. In the short term, there is a higher likelihood of a dip to $52-55K rather than staying above $60K.
Recent Developments in the Crypto Space
BNY Mellon Bank has informed the US SEC about its investments in the spot bitcoin-ETF market, signalling growing institutional interest in cryptocurrencies. Former Ethereum advisor Steven Nerayoff has raised concerns about the security of ETH since its ICO and accused the network’s co-founders of fraudulent activities. The UK’s National Crime Agency and police have been granted powers to crack down on cryptocurrency used by criminals.
On a positive note, institutional investors are increasing their investments in altcoins, with Solana being a notable beneficiary. CoinShares predicts that the altcoin market capitalisation will reach new highs, leading to what Real Vision CEO Raul Pal calls a ‘cryptocurrency summer’. DFINITY president Dominic Williams highlighted the importance of select blockchains like Bitcoin, Ethereum, Solana, and Avalanche, while praising the Internet Computer Protocol (ICP) as a third-generation network that could revolutionise online interactions.
In a surprising move, US payment service Stripe has announced the resumption of cryptocurrency transactions after a six-year hiatus, indicating a growing acceptance of digital assets in mainstream finance.
