Crypto Assets Bearish Outlook: Is a Reversal Imminent?

09 Jun, 2024 Updated 27 Aug, 2024

By David Pokima

Crypto Journalist

Expertise : Finance/Crypto Journalist

David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.

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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Bitcoin (BTC) Price

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.