Decline in Cryptocurrency Market
On Wednesday, the cryptocurrency market saw a drop in prices, losing the momentum it had gained from multiple Bitcoin (BTC) ETF filings over the past two weeks. This downward trend occurred amidst growing concerns about the global economy’s health. Equity markets showed a mixed response as traders reduced their activity post Federal Reserve Chair Jerome Powell’s announcement that consecutive interest-rate hikes are in consideration. The aim is to counter inflation efficiently.
Bitcoin’s Performance
Throughout the trading day, Bitcoin’s price showed a decline, reaching a low of $29,960. However, it managed to bounce back above the $30,000 support level before the close of the day. Bitcoin’s current trading range is within $29,800 – $31,400. Despite the dipping trend, Bitcoin futures prices in July showed signs of decline after a contract high earlier during the week.
Optimism for Bitcoin’s Future
However, a ray of optimism is seen for Bitcoin’s future, given the steep price uptrend and a bullish pennant pattern on the daily bar chart. Analysis predicts more price upside in the short term. Markus Thielen, head of research at Matrixport, predicted a potential rally in Bitcoin prices during July, highlighting past trends where Bitcoin has shown positive returns during the month.
Cryptos and Altcoins Market
The drop in momentum also affected the altcoin market with nearly all top 200 tokens experiencing losses. BitDAO (BIT) was a notable exception, seeing a 6.9% price increase. On the other hand, popular meme token Pepe (PEPE) and the layer-one project Conflux (CFX) took a significant hit, with their prices falling by 12.5%.
Current Market Scenario
The total cryptocurrency market cap stands at $1.16 trillion, with Bitcoin’s dominance rate at 50.5%. The recent fluctuations signal a potential shift in the cryptocurrency market amid ongoing global economic issues.
