- BTC currently trades at $29,927 from $31,800 in 24 hours
- Of the top 10, Solana (SOL) alone dropped by above 11%
- “Prices are dropping because crypto buyers currently have a low-risk appetite,” CEO Mudrex crypto platform.
Bitcoin (BTC) ended the month of May with a price above $32,000. In the wake of June 2, BTC dropped below $29,500.
Data available on CoinMarketCap shows that the global cryptocurrency market cap has once again fallen below $1.23 trillion, with every altcoin in red. Of the top 10 coins, Solana (SOL) alone dropped by above 11%, while Ethereum (ETH) and Binance Coin (BNB) are still within 5% depreciation. The worst-hit crypto so far is NuCypher (NU), with a 26% loss in value.
Darshan Bathija, the CEO and co-founder of Vauld crypto exchange, in an interview with Financial Express, said the crypto market currently moves in a pattern similar to stock markets and that the market is still in a bullish trend.
With the US equities enduring another day of retracement, the crypto markets followed a similar path. With the high correlation between BTC and the S&P 500 index, the odds of traders remaining bullish on cryptocurrencies.
Edul Patel, the CEO and co-founder of crypto investing platform Mudrex, believes prices are dropping because crypto buyers currently have a low-risk appetite. He said:
BTC witnessed a brief bounce in the final week but has drifted back to US$29,000 in the past 24 hours. This indicates a low-risk appetite among the buyers. It is yet to be seen how long the bearish trend will continue to affect the market.
Analysts at WazirX Trade Desk also said that “the daily trend for Bitcoin continues to traverse within a descending triangle pattern. The next resistance for BTC is expected at $40,000 and immediate support is expected at $26,800. Bitcoin needs to break past the $40K level to witness any significant upward rally.”