Crypto Market Plummets: Bitcoin Drops to $95,000
The cryptocurrency market has decreased by 6.12% in the last 24 hours, falling to $3.36 trillion. Trading volume has reached $172.39 billion, showing a significant 35.28% increase, reflecting rising activity despite uncertainty in the market. The Fear and Greed Index, which measures investor sentiment, has dropped to 54, indicating a neutral emotional state in the market.
Factors Triggering the Decline
The sharp drop in the cryptocurrency market is attributed to macroeconomic uncertainties such as rising U.S. Treasury yields, budget deficits, and upcoming debt ceiling negotiations. These developments have caused concern among investors and increased volatility between asset classes, negatively impacting the cryptocurrency market.
Recent turbulence in the U.S. markets also supports this scenario. The decline in leading stocks like Tesla and Nvidia, combined with a 1.38% drop in the S&P 500 index, has pressured the cryptocurrency market. Additionally, the appreciation of the U.S. dollar against six major currencies has decreased investment interest in the crypto market.
Bitcoin Experiences a Sharp Pullback
The largest cryptocurrency, Bitcoin, has fallen to $95,250 with a decline of up to 6% in the last 24 hours. However, its market capitalization remains strong at $1.91 trillion. Bitcoin’s trading volume has increased by 26.81% to $62.56 billion, heightening the selling pressure in the market. While the downtrend continued during Asian trading hours, BTC has shown slight upward movement towards $95,700 in recent hours.
Experts argue that this decline in Bitcoin is a temporary situation. Strong fundamental indicators and increasing demand in the market suggest that Bitcoin retains its long-term upward potential. The option market indicates that $100,000 short-term call options present an appealing strategy.
Altcoin Market Faces Greater Challenges
In the altcoin market, Ethereum has been the biggest loser, dropping to around $3,300 with a loss close to 10%. Solana and XRP contributed to the downturn with declines of 9.21% and 5.06%, respectively. Investors perceive these declines as influenced by external factors.
No altcoins managed to remain in the positive territory among the top 100 cryptocurrencies in the last 24 hours, while the least affected were BGB, LEO, and OM. Conversely, the largest losses were seen in FTM, HYPE, TIA, and ENA.
Is a Recovery Possible in the Cryptocurrency Market?
Experts believe that these declines in Bitcoin and altcoins are temporary, and the strong fundamentals of the market offer hope for recovery. It is suggested that investors can gain an advantage in such volatile market conditions by focusing on strategic opportunities. However, the future of the market will depend on the course of macroeconomic factors.