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Bearish sentiment has prevailed on the cryptocurrency market throughout this past week. The total market cap, as per CMC, is currently $2.04 trillion after a 0.39% dip over the last day. The community is worried as the market cap now inches closer to going below the prestigious $2 trillion level.
Bitcoin (BTC), the biggest crypto on the market in terms of market capitalization, is struggling during this time. It is currently trading at $58,420 after a minor 0.77% increase in the last 24 hours. It has dipped 9.41% over the past month as it failed to clear the next resistance levels. Bulls have been struggling to overcome the market as bears are controlling the narrative.
The price of BTC has remained stuck around the $58,000 range. Although it managed to go past the $63,000 level in the middle of August, the extended consolidation period seems to take over this brief rally. There has also been selling pressure on the coin in the recent past, and even Bitcoin-based investment products have been struggling.
Huge outflows in digital asset investment products
According to CoinShares research, crypto-based investment products witnessed significant outflows of $305 million in the last seven days. A broader bearish sentiment has been seen ion the market after the unveiling of stronger-than-expected economic data in the United States. This data has ended the chances of an interest rate cut in the near future. Bitcoin products were hard hit by this negative sentiment on the market.
There were around $319 million outflows in Bitcoin, which has further spread negativity among traders and institutions. On the other hand, Ethereum (ETH) also witnessed outflows of $5.7 million, ending the hype around the recent launch of Ethereum spot ETFs. Overall, investors are sitting on the sidelines, as bearish sentiment continues to prevail on the market.
Yuri Molchan
Denys Serhiichuk