On Monday, the cryptocurrency market witnessed a price decline, with most cryptocurrencies trading in the red. Bitcoin (BTC) fell 0.44% to $27,477, while Ethereum (ETH) was below the $1,850 level. This price drop was a correction following the mini-bull run that the market had seen in the past few weeks.
Despite the pullback, experts believe that Bitcoin (BTC) has more potential for growth if macroeconomic factors turn favorable.
Other top crypto tokens, including Binance Coin (BNB), Ripple (XRP), Cardano (ADA), Dogecoin (DOGE), Solana Polygon (MATIC) and Polkadot (DOT), also experienced a decline of up to 3%.
As a result, the global cryptocurrency market cap was trading lower at around $1.16 trillion, falling 0.73% in the last 24 hours.
Bitcoin’s Market Cap and Volume
The market cap of Bitcoin, the world’s largest cryptocurrency, was around $531 billion. The BTC volume stood at approximately $13.98 billion, rising 6.87% in the last 24 hours. Furthermore, Bitcoin’s dominance is currently 45.93%, indicating a slight increase of 0.19% over the day, according to CoinMarketCap.
Possible Reasons for Bitcoin’s Decline
Sathvik Vishwanath, Co-Founder & CEO of Unocoin, attributed the 10% decline in Bitcoin over the past three days to the liquidation of long positions and the break of key support in the $29,000 area. The hotter-than-expected US economic survey data and UK inflation data pushed US yields higher, weighing on low-yielding crypto assets like Bitcoin.
Rajagopal Menon, Vice President at WazirX, offered a different perspective. He believes that the market indicators point towards a “buy” sentiment.
Conclusion
Although the market saw a price decline on Monday, experts believe that the crypto market will remain stable in the coming weeks if there are no surprising news headlines. The correction in Bitcoin’s price after the mini-bull run may be a healthy pullback that could provide more potential for growth in the future. With conflicting opinions about market indicators and possible reasons for Bitcoin’s decline, it remains to be seen what direction the cryptocurrency market will take shortly.
It is worth noting that the cryptocurrency market is known for its volatility, and price fluctuations are not uncommon. Investors and traders need to exercise caution and conduct thorough research before making any investment decisions.
The crypto market is still relatively new, and there is a lot of uncertainty surrounding it. Therefore, it is crucial to keep up-to-date with the latest developments and expert opinions to make informed decisions.
Overall, while the recent price decline may be a cause for concern for some, others see it as an opportunity to buy and hold for the long term. Only time will tell how the cryptocurrency market will evolve in the future.
