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It has been days since the market entered a new month from the low-performing days of April. The crypto market has already started to recover a little, but there is a long way to go as the global market cap is only at $2.36 Billion and the trading volume is at $72.72 Billion.
In this blog, let us discuss the possibility of the crypto market gaining stability again and its recovery date.
Why the Crypto Market Went Down?
April was the slowest month of the year till now, as all the cryptocurrencies suffered heavy losses after making huge gains in the previous months. The analysts believe that the high inflation and unemployment have brought down the US economy, affecting the entire crypto market.
The add-on was the poor performance of the Bitcoin spot ETFs throughout April. The percentage of outflows was way higher than the inflows, which were concerning.
Bitcoin ETF had received huge gains right from its launch but was on halt in April, causing the Bitcoin price to fall. However, that did change this month in May as the Grayscale Bitcoin Trust (GBTC) alone witnessed $65 Million in inflows, whereas the total inflow was about $378.3 million.
Crypto Market Recovery Might Began By 15 May
Daniel Yan, the founder of Kryptanium Capital, has shared his prediction of witnessing stable crypto market conditions. According to his analysis, the market might continue showing unpredictable behavior till mid-May, after which better stability might be seen. This is because the Consumer Price Index (CPI) data will be out in 15 days, which can change the crypto market’s dynamics.
The Federal Reserve’s current statements have also indicated in favor. The pullout of money from the economy will help in bringing all kinds of trades up, including the cryptocurrency ones.
More importantly, the Bitcoin price recovery is the biggest sign of increased stability in the market. At the time of writing, Bitcoin is valued at $64,125.78 with a trading value of $28,387,536,640 after a 29% surge from yesterday. Bitcoin had declined to a low of $56.6K and has significantly recovered in the last few days. Along with that, Ethereum price has also recovered and is currently trading at $3100. Ethereum, collectively with Bitcoin, makes up more than half of the market, and because of that, a lift is also noticeable in the overall market.
Final Thoughts
May end will also witness the results of Ethereum Spot ETF by the SEC. An Ethereum bully rally can begin with the positive results results from the US regulators. Its impact will also appear in the crypto market.
There are no proper indications about what the SEC will decide, so if the results are positive, it will be a celebration for the market. For now, it has to see what can change in a week’s duration and what the market will look like after the 15th.
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