After more than eight weeks of trying to break above $31,000, Bitcoin bulls have succumbed to medium-term selling pressure. According to the latest crypto market data, Bitcoin’s price dropped nearly 5 percent, reaching a monthly low of around $26,188 during the early trading session in London. Similarly, Ethereum (ETH), the second most valuable digital asset by market capitalization, also experienced a five percent decline, trading at around $1,759 at the time of publication.
Crypto Market Cap Drops, Bitcoin Dominance Diminishes
Consequently, the total crypto market cap plummeted by about 3.3 percent and rested at about $1.14 trillion on Friday, May 12. With Bitcoin’s dominance rapidly dropping below 48 percent, as market data from TradingView shows, crypto traders should ponder whether the anticipated altcoin season is about to materialize.
Consider Both Points Of View: Bitcoin Price Prediction: BTC Price To Hit New All-Time High Within 415 Days, Crypto Analyst Predicts – Coinpedia Fintech News
Rising volatility expected as global recession fears mount
Given the increasing likelihood of a global recession amid rising inflation, experts expect a significant increase in cryptocurrency volatility in the coming months. The debt ceiling debate in the United States has torn the Federal Reserve between implementing a monetary tightening policy to meet a 2 percent inflation target. In addition, traditional banks are grappling with the challenges of the Web3 industry and other fintech companies, which have caused recent bank runs.
Related: Can Crypto Markets Survive a Massive Recession in the US? – Coinpedia Fintech News
Short pinch looms
In the last 24 hours, more than 82 percent of long traders in the crypto market have liquidated, according to reports from Coinglass. Consequently, these traders are likely to shift their focus to short selling, potentially fueling a long squeeze. As a result, the crypto market may continue to decline in the coming days due to increased panic selling.
The future is bullish
Renowned trader and investor @CryptoTony_ on Twitter has expressed his optimism about the crypto market’s long-term prospects, pointing to a possible recovery in the third quarter of 2023.
