After a strong push higher, Bitcoin saw rejection and a reversal as it once again fell below the $30,000 mark. The market traded in the green in the last 24-hours with Bitcoin’s nearly 5% gain. However, BTC has returned to the range of $29,842 – $31,693. This suggests strong volatility over the last 24-hours.
It also shows the correlation with the Nasdaq 100 in the US. The market mirrored the gains from May 30 – a pullback from day highs was inevitable. At the time of writing this article, BTC was down by 5.14% in the last 24-hours. The popular crypto lost all the gains it saw on Monday. Now, it’s trading at $29,505, as per data from CoinMarketCap. Ethereum also lost 6.50% and is changing hands at $1,749.
Among the altcoins, Avalanche (AVAX) is the biggest loser. It’s down by 9% in the last 24-hours. Polkadot lost 7.18% and Solana 5.07%. Ripple’s XRP, which is battling a lawsuit by SEC, is down by 3.69% and Cardano also lost 2.67% of its value. The overall crypto market is on a tumble. The meme coins have recorded a downturn. Dogecoin and Shiba Inu have lost 4%.
Despite the volatility in the crypto market, investments in multi-asset crypto funds rose by $4.3 million last week. This brought the year-to-date total to $201.3 million. But for much of 2022, crypto assets have been in a protracted downtrend with Bitcoin recording nine consecutive weekly declines. This is the longest in history. This suggests investor sentiment is in a prolonged period of extreme fear on the Bitcoin Fear & Greed Index. It narrowly missed its tenth down week by closing a mere $450 higher than the previous week.
What may be the market situation, investors are buying the dip – Purpose Investments, a Canadian spot Bitcoin exchange-traded fund, being the latest example of purchasing thousands of BTC last month.