Bitcoin (BTC) keeps struggling from the bearish sentiment in the market, fighting at important technical levels of $30,000, while the market capitalization of cryptocurrencies has lost $800 billion in a month.
On Tuesday, the crypto market capitalization fell to $1.4 trillion, a far cry from its all-time high of $2.9 trillion in November 2021. The fourth-largest stablecoin in the world, TerraUSD (UST), lost its peg to the US dollar on May 10, plunging below $1 and losing over 30% of its value as the overall crypto market continues to plummet.
During Wednesday’s Asian trading session, Bitcoin (BTC) fell under $30,000 for a short while before recovering to around $31,703. Bitcoin (BTC) is down more than 56% from its November all-time high of almost $69,000. The second-biggest cryptocurrency by market capitalization, Ethereum (ETH) has dropped to about $2,386 per unit, a decline of nearly 2.64 % in just 24 hours.
Glassnode, the blockchain data provider revealed that “Bitcoin remains highly correlated to the broader economic conditions, which suggest the road ahead may, unfortunately, be a rocky one, at least for the time being.”
Although the Federal Reserve’s rate increases have hurt cryptocurrencies, investors do not appear to be deterred. According to a report published Monday by Coinshares, the digital asset management firm, $45 million was invested in linked crypto funds and products the week before.
Edward Moya, the OANDA market analyst said that “Institutional investors are paying close attention to bitcoin, and a lot of people who bought last year are now losing money on their investments.” He confirmed that “Bitcoin broke through key technical levels as Wall Street’s relentless selling pressure continues.”