Markets
Crypto market capitalization drops 5.2% in seven days
Crypto market capitalization has fallen over the past seven days, although slight increases were recorded today as the price recovers. Total market capitalization plunged 5.2% this week as sentiment plummeted towards Bitcoin (BTC), altcoins and memecoins.
Low sentiments caused the price of Bitcoin to fall below $61,000, although net inflows were recorded across several assets. Despite the crypto market bottom, several bulls are interested in a future market rise with increasing macroeconomic and market conditions.
Bitcoin and Altcoins show weekly losses
The broader crypto market saw losses, with some assets posting double-digit losses. Market leader Bitcoin posted weekly losses of 0.9%, while its daily gains of 2% erased losses. Recent flows place BTC’s monthly performance in the green zone above 1.3%.
Ethereum and Solana saw weekly outflows of 4.30% and 4.50%, respectively. Both assets also recorded daily gains as the crypto market recovered on Monday. Ethereum suffered short-term losses due to reduced institutional investment in its products. Despite the anticipation, for spot Ethereum ETFsentiments have slowed in recent weeks.
Ripple (XRP) has plummeted 6.85% over the past seven days amid the ongoing lawsuit with the Securities and Exchange Commission (SEC). Avalanche (AVAX) and Chainlink (LINK) recorded biggest weekly losses of 12.92% and 8.27%. Memecoins also recorded falling numbers as investors moved funds out of risky assets. Dogecoin (DOGE) and Shiba Inu (SHIB) showed losses of 5% and 3% respectively.
Amid falling numbers, Toncoin (TON) and TRON (TRX) traded against the market with gains over the last seven days.
Factors Behind the Crypto Market
The short-term drop in cryptocurrency market capitalization was due to reduced institutional investment in the market as a result of falling sentiment. The SEC’s approach to regulating cryptocurrencies has left investors skeptical of the market.
Despite this drop, crypto bulls begin a run due to a predicted rise in the macroeconomic factors. The stock market also saw slight increases, with early uses of stock-like entries.
Read too: 4 Altcoins to Buy Before Altcoin Season Starts
David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and keeps an eye on the latest news. Keeping up to date with trends, David has reported across multiple niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from financial markets, David rides his bike and horses.