The total market capitalization of bitcoin and cryptocurrencies has lost over $120 billion over the past two days
The total market capitalization of bitcoin and cryptocurrencies has lost more than $120 billion over the past two days, after being volatile since the beginning of this week, with bitcoin dropping to a 17-day low below $32,000.
The leading cryptocurrency was not the only one, but other cryptocurrencies also fell and suffered huge losses, as Ethereum traded below $2000 and Binance fell to the $300 level.
The cryptocurrency market appears to be struggling at current levels, as the bulls fail to find enough momentum to move forward, and while most of them are charting moderate gains, the situation has remained largely unchanged in the past 24 hours.
Bitcoin drops below $32,000
During the first half of July, Bitcoin traded in a narrow range between $36,000 and $32,000, and despite the stabilization period, all indications are that a huge move is coming.
Volume for July has remained painfully low, especially over the past two weekends, which have seen the two lowest volume days. To be in both directions, however, there are more bearish signals than bullish ones.
While last weekend recorded minimal trading volume, that did not stop Bitcoin from rising, as it managed to rise from the $33,000 level to the $35,000 level, and although it struggled hard to break that level, it was eventually unable to do so. From completing its bullish momentum to get back to the downside rally and pull back to $33,000.
But it got worse since then, as the bearish curve took over and fell Bitcoin It fell below $32,000 for the first time since the end of June, and hit a 17-day low of $31,650.
But it managed to rebound a bit later to settle above the $32,000 level, bringing the total market capitalization of Bitcoin to less than $600 billion, while its dominance of the cryptocurrency market rose to 46%, due to significant losses in other major cryptocurrencies.
Trading volume decreased
The leading cryptocurrency is also declining as investors wait for an upcoming opening of thousands of bitcoins held by GrayScale, the world's largest crypto fund.
Meanwhile, the on-chain data for the coin is not encouraging, the data shows that the number of large Bitcoin transactions has fallen to the lowest level since November 2020, while the volume of large transactions has also decreased, as well as the number of active Bitcoin wallets and transactions.
Moreover, trading volume on major cryptocurrency exchanges such as Kraken, Binance and Bitstamp fell by more than 40% in June, this indicates that the demand for cryptocurrency is waning.
This drop occurred as China ramped up its crackdown on digital currencies. It did so by intensifying its crackdown on miners in the country, which led to a sudden drop in hash rates. The country also directed its banking and other financial institutions to stop accepting and processing digital currencies.
One crypto market analyst says that the digital asset ecosystem has been punched in the face, so it is currently in a fierce struggle to survive, usually when you have a big sell-off, investors are very scared and withdraw their money.
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