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- Bitcoin price has shed 50% of its value since encapsulating the highest peak of $62k in April
- Altcoins like Ethereum, Cardano, BNB and Dogecoin are down 5-10% within a week
- Experts believe Bitcoin’s price is somewhere near its bottom and a bull run is expected
Bitcoin’s price was down 35% in a month for the first time since the bloodbath of 2018. Elon Musks’ tweets and the China crackdown continue to have a ripple effect on Bitcoin and altcoins.
However, El Salvador has given legal status to Bitcoin becoming the first country to do so. It is currently the sole driver that is pushing up the price but majorly dominated by fearful investors selling their investments at lower prices.
Wall Street analysts believe that the recent backwardation or correction in Bitcoin’s price has set the onset of a bear market. Bitcoin’s weakness was reflected in its price due to the dearth of institutional investors in the market.
Corrections everywhere
The cryptocurrency market witnessed major corrections with the total market cap standing at $1.5 trillion down by half a trillion. Some might say it happened due to speculative trading however on the other hand tweets from celebrities and government crackdowns have played a major role.
The past bull runs were majorly triggered by new investors making the market just out of fear of missing out (FOMO) and tumbling prices have led to their exit as well. Risk averse investors do not stand a chance in the volatile market of cryptocurrencies.
The deflation of the overvalued bubble was necessary as global stocks also reeled under the pandemic. The US inflation is at an all time high and had an effect on crypto prices as well.
Bitcoin dominance assured
At the turn of the decade, Bitcoin‘s share over the crypto market stood at 70% which has fallen approximately to 40%. Altcoins have made a mark for themselves as they rode against Bitcoin’s pressure.
The strong projects of blockchain network have been able to withstand the bearish trend as the small caps and lesser known projects faced the brunt. The recent fall has also shed some light upon cryptocurrency fundamentals that need to be strong before investing in them.
The sell-off in May was the 6th event among the largest corrections that took place. Experts believe that Bitcoin’s price is near the bottom and a bullish trend will be soon evident.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
