Market overview
The cryptocurrency’s market capitalization has lost another 3.5% in the past 24 hours in a sharp sell-off that began this month. During this period, the market cap fell to $2.22 trillion, and at its lowest point early in the day, it fell to $2.17 trillion, compared to $2.50 trillion on Sunday. In this environment, market movements are only characterized by varying degrees of decline: from -0.6% (TRON) and -3% (Hedera) to -15% (NEAR, Toncoin).
Bitcoin briefly fell to $61.3K early Thursday, returning to the area where it hit its lowest levels in February. It is in this region that the leading cryptocurrency found buyers during the declines in February and March. A break below the YTD lows would make the $53-55K range the next potential downside target. Although we do not see a sharp pullback to the downside, as was the case four months ago, the RSI is at roughly the same levels as severe oversold conditions.
It is also important that on the weekly time frames, BTC is once again testing the 200-week moving average, which has historically been a strong support level: the only period of breakout below it was in the second half of 2022. Although nervous selling and technical slippage cannot be ruled out during automatic execution of orders in times of low liquidity, it is very likely that the market will take a break from its decline. After all, even bears need a rest every now and then.
News background
According to Arkham, Cameron and Tyler Winklevoss, founders of Gemini, transferred 1,000 Bitcoins from Gemini Custody to the hot wallet of their cryptocurrency exchange. Such transfers are usually seen as a sign that a sale is in progress.
The cryptocurrency market is suffering losses amid the stock market rally, especially for companies working in the field of robotics and artificial intelligence. Bitwise notes that uncertainty surrounding Congress’s adoption of the CLARITY bill is also exerting pressure. Who needs cryptocurrency now that the Nasdaq-100 is up 43% over the past year?
The influx of money from Bitcoin ETFs is just normal market noise, while Wall Street continues to bet on cryptocurrencies, according to Bloomberg Intelligence analyst Eric Balchunas.
BitMine CEO Tom Lee says the cryptocurrency market’s decline is due to investors withdrawing, not the end of the bull cycle. From his point of view, everything that is happening fits into the classic scenario of the formation of a market bottom and may precede a new phase of growth.
According to CoinDesk, major payment systems Visa, Mastercard, and Stripe are exploring the possibility of creating a unified stablecoin platform. Coinbase, the largest cryptocurrency exchange in the United States, could become a partner in the project.
