Crypto Assets Bearish Outlook: Is a Reversal Imminent?

Crypto Assets Bearish Outlook: The macroeconomic conditions have turned unfavorable today, which has resulted in a significant decrease in the value of crypto assets. It is now the second day that most assets have experienced losses, with Bitcoin (BTC) and altcoins continuing to indicate they are in the red zone. These outflows have caused the market cap to plummet, which in turn has resulted in liquidations and a decrease in the amount of decentralized financing (DeFi) transactions.

The market capitalization of cryptocurrencies is currently at $2.67 trillion, representing a decrease of 1% over the previous twenty-four hours. While top assets experienced outflows, overall losses appear smaller, except for inflows into meme coins. Even though intraday trade had a minor uptick, trading volumes and on-chain activity decreased simultaneously. Currently, the daily trading volumes amount to $91.3 billion.

Will Crypto Assets Rebound?

Will Crypto Assets Rebound?

Despite the pessimistic forecast, market analysts are predicting a turnaround that will result in gaining ground. Trading during the middle of the day and inflows into new meme currencies are examples of this phenomenon. It is anticipated that leading Crypto Assets Bearish Outlook assets will experience a revival as macroeconomic variables become more favorable. As a result of the Bitcoin price falling below $70,000, digital assets experienced outflows, which ushered in a period of sideways trading and liquidations.

Before the latest collapse, the asset price had topped $71,500 the previous week, and bulls anticipated higher capital inflows before the decline. Even though the cost of Bitcoin has decreased, researchers believe that this is not the only negative factor in the market. Following the study’s release by the United States Department of Labor, the potential for interest rate reductions was delayed.

Read More: Highest Crypto Investment Product Inflows in 5 Weeks

Reduced interest rates are one of the critical factors that are driving inflows into the market for digital assets. As interest rates continue to rise, investors will move their money away from assets that carry a higher level of risk. Bulls anticipate that there will be a significant upward swing in the market if these feelings appear to become green.

Market Decline Today

Market Decline Today

A significant amount of money left the market, namely in Bitcoin, altcoins, and meme currencies. At the same time, Bitcoin reduced losses to 1%. Ethereum experienced cash outflows of 2%, with its price remaining at $3,677. Other alternative cryptocurrencies, such as Solana and Ripple, experienced a loss of 4%, while Toncoin and Cardano experienced a loss of 3%. Even though newer assets showed gains, popular meme coins such as Dogecoin and Shiba Inu had broader outflows. On June 7, the stock market was halted entirely due to pessimistic sentiments.

Also Read: Bitcoin Rebound Has Crypto Options Traders Anticipating $100K

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