Bitcoin Market Cap Down By $500M
The Bitcoin price rally was one of the most monstrous rallies of the time as the price surged quickly from $10K to above $60K. However, many dumps were also a part of the rally, yet the bullish momentum was never flipped.
In the recent crash, BTC price dropped almost 30% and previously, the price had experienced a 15% crash due to some negative FUD. Bitcoin, which was once a trillion dollar asset, has now lost nearly $500 million market capitalization since the recent crash.
Moreover, the market dominance is also slashing day by day which stands at 44.7% at the press time, paving way for the other altcoins to grow. Currently, the BTC price, which had regained the lost position above $40K, has slided down yet again. And hence it might be a matter of concern as if the daily close is below $40K, then the probability of revisiting lower levels increases.
Yet during the recent crash, the trading volume and the social volume had spiked like never before. Santiment, an on-chain analytic platform cautions to ‘keep an eye on hype dying down’ as the price consolidates.
🤯 In #Bitcoin's 12+ year history, there has never been a larger spike in both raw trading volume ($126.4b) and social volume (204.6k tracked mentions) in a single week, according to @santimentfeed data. As prices polarize, keep an eye on hype dying down. https://t.co/kGqZj3LalL pic.twitter.com/pCe64Mb3p1
— Santiment (@santimentfeed) May 22, 2021
This may be considered as one of the bullish indicators as the market sentiments appear to be positive. And hence, the BTC price may surge, recovering the losses, slowly yet steadily.
Also Read:Bitcoin Price Is Heading Towards a Steady Recovery While the Rest Altcoins Pack Follow!
ALT/BTC Pairs May Suffer
As the dip in the BTC price caused more regression in the crypto space as more alts tend to follow. Therefore despite the price of various altcoins initiating with recovery, yet they may suffer a pullback when paired with BTC.
However, amid the speculated ongoing Altseason 2021, many altcoins smashed the peak which were beyond the expectations. And since the recent crash, most of them are a minimum of 40% away from their highs.
Whether the market suffered a healthy correction or a steep crash is hard to say, yet currently the market may experience a ‘seller exhaustion phase’.
As sell-side momentum accelerates, the chances of seller exhaustion increase
— Rekt Capital (@rektcapital) May 22, 2021
As the market is providing immense opportunity for accumulating at the dip, the panic sellers may also get exhausted at certain point. Therefore, flipping the bears, the bulls may regain the power to uplift bitcoin price. Moreover, the fundamentals are the same before and after the steep free-fall and hence a proper reciprocation with BTC price is imminent.