After a very short recovery period when most major assets started to move upwards, the cryptocurrency market crashed once again and recorded its lowest results in two months. Will this decline continue?
Crypto market is at 2-month low! How long will it last?
At the time we prepared the content, the total crypto market capitalization stood at $1.66 trillion, which represents a drastic 16.5% drop from the $2 trillion it previously recovered at the end of March and protected at the beginning of April.
Total 3-month cryptocurrency market cap. Source: CoinMarketCap
Analyzing the charts on CoinMarketCap, it becomes clear that the current valuation of the entire crypto market is at $1.59 trillion, the lowest since Feb. 24.
Falling prices and market sentiment
The falling market cap came along with the overall bearish behavior of its main participants such as Bitcoin (BTC), which fell 8.22% in the last 24 hours, Ethereum (ETH) and XRP, which fell 6.96%, down 5.25% for the day.
Indeed, community voters on CoinMarketCap had predicted with high historical accuracy that at the end of May Bitcoin would trade at $46,245, Ethereum at $3,612 and XRP at $0.793.
However, as Santiment noted in May, the sentiments of FUD (‘fear, uncertainty, doubt’) in the crypto market are said to be overwhelming and the effects of increased social ‘sell’, ‘sell’ and ‘sold’ calls are seen through trading volumes.
On May 6, van de Poppe announced that with its latest and sudden drop, Bitcoin has swept the bottom “as it did in February” and if it breaks the critical $37,500, it could test $34,000.
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