Crypto assets have recorded a sharp decline today as macroeconomic conditions flip negative. The losses of most assets are now in its second day with Bitcoin (BTC) and altcoins showing still in the red zone. These outflows have plunged the market cap and led to liquidations and a fall in decentralized finance (DeFi) numbers.
At the time of writing, the crypto market capitalization stands at $2.67 trillion, down 1% in the last 24 hours. Overall losses appear smaller besides inflows towards
meme coins while top assets saw outflows. Although intraday trading had a slight recovery, trading volumes as well as on-chain activity fell. Daily trading volumes are currently at $91.3 billion.
Will Crypto Assets Rebound?
Despite the bearish outlook, market analysts suggest a turnaround gaining lost ground. This can be seen in mid-day trading as well as inflows into new meme coins. As macro factors become positive, a resurgence is expected among top crypto assets. Digital assets saw outflows as Bitcoin price slipped below $70,000 ushering in sideways trading and liquidations.
Last week, the asset’s price crossed $71,500 with bulls projecting higher inflows before the recent correction. The fall in Bitcoin price isn’t the only bearish factor in the market as the U.S. Labor Department’s report pushed back chances of interest rate cuts, analysts opine.
Rates cuts are a major drive of inflows to the digital asset market because increased rates will see investors move funds out of risky assets. If these sentiments flip green, bulls expect a major market swing upward.
Market Decline Today
From Bitcoin, altcoins, and meme coins, the market saw huge outflows. While Bitcoin losses were reduced to 1%, Ethereum posted 2% outflows with its price at $3,677. Other altcoins like Solana and Ripple recorded 4% outflows while Toncoin and Cardano both saw 3% losses. Top meme coins like Dogecoin and Shiba Inu had wider outflows although newer assets saw gains. The stock market was all stunted on June 7 amid bearish sentiments.
Also Read: Crypto Trader Makes $2.4 Million on 12 Meme Coins: Here’s More
