Today, too, Bitcoin (BTC) failed to rise. In contrast to bull analysts, the world’s largest cryptocurrency dropped by 18% from its previous price this week, which caused the whole market to see a decline in trends. Ethereum (ETH) also saw a major crash in its prices, while altcoins are barely holding up.
Bitcoin is seeing this year’s worst prices and a 12-month low; almost similar to the time when the pandemic hit and the market crashed. Many investors believed the Bitcoin price will surge high in 2022 since most parts of the world already recovered from the dreadful COVID-19; instead, 2022 is looking worse than 2021 for almost every sector.
Governments all around the world are suffering from the same crisis, and it’s becoming very hard for normal salaried people to afford basic necessities. The same goes for the crypto market, the cryptocurrencies are floating in the lower lows for months.
The crypto community has been completely frozen and dejected since the first week of May when the prices dropped and UST/LUNA, which aimed to become the largest cryptocurrency, crashed by almost 92%. Now, in June, the world sees no light of hope for the prices to rise.
This week, the prices were down again. According to the recent reports, the CPI increased by 8.6% in May resulting in Bitcoin prices dropping below $29k. Now, Bitcoin is down by $26k.
Bitcoin weekly prices drop 18%
Based on the data collected from CoinMarketCap, BTC prices dropped by 18% within one week. Prior to the start when Bitcoin saw a sudden rise, the cryptocurrency failed to beat its resistance level and dropped below $26k. As of now, BTC is trading between $26,000 to $25,513, subject to a drop lower than the current price.
Bitcoin has always claimed to be independent of the inflation prices of the traditional market but the recent trends show that the cryptocurrency is attached to the changes occurring in the global economy. BTC proved it in January 2022 when it showed a high correlation when compared with S&P 500 and Nasdaq.
In June, almost every investor and trader is asking the same question: how long until BTC beats its low resistance level? The recent reports indicate this whole year might not be a good year for the crypto world.
Ethereum suffers a 28% loss
Ethereum, the world’s second-largest cryptocurrency, is also down by 28% for the past week. Many had hoped for ETH to rise in the charts after it dropped Ropsten testnet; however, the market didn’t show much interest in this updated version.
When comparing the ETH price trend last year, the public was quite excited to hear that the Ethereum blockchain was finally transitioning to the Proof-of-stake model. Nonetheless, today’s market shows traders still don’t feel confident with the update. The reason is despite the Ropsten testnet upgrade, the Ethereum developers announced an essential Difficulty Bomb delay that would take up to two months.
Now, the Ethereum price is trading at $1,281 at the time of writing.
Crypto market in a trance
With the two main cryptocurrencies suffering, the whole market is subject to see a loss in prices. Many altcoins are seeing a 2-digit percentage drop. This is especially alarming for small digital currencies that are barely managing to stay afloat in the market.
Based on last week’s report, Cardano (ADA) dropped 24%, BNB dropped 22%, XRP fell 18%, Solana (SOL) tanked 31%, Dogecoin (DOGE) suffered 28% loss, Polkadot (DOT) dropped 28%, Avalanche (AVAX) tanked 35% and Polygon (MATIC) lowered by 25%.
Future of crypto market
Seeing the gradual decline in the crypto market, many market analysts and veteran traders are walking on a thread. The bear market is too strong for any trader to hope for the best.
However, the blockchain industry itself is still booming in business with million-dollar investments and funds for Web3 startups and companies which shows that the market is still hoping to see BTC, ETH, SOL, and other cryptocurrencies recover from the loss.
Based on CoinMarketCap, the global crypto market cap tanked to $1.03 trillion, a 7.5% drop in just one day. Will Bitcoin prices rise? As of now, nothing can be said but this week will surely give us a hint.
