- 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 (NASDAQ:TTD) 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.”