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The long uptrend last week has boosted the value of the cryptocurrency market. However, in just the past 2 days, the signs of recovery have been almost eliminated.
Last week, the impressive rally of Bitcoin, Ethereum and other altcoins restored some confidence among crypto investors. The market value has grown by nearly $100 billion during this time, bringing the total capitalization to over $1 trillion.
Before that many people believed in the binding relationship between crypto and securities. They believe that when the US CPI in June is announced with a record high of 9.1%, the cryptocurrency market will suffer from negative impacts from the macro and stock situation. However, the actual situation is completely opposite to the previous observations. The cryptocurrency market has had a dizzying recovery, reaching its best performance in the past 3 months. ETH recovers nearly 33%, Bitcoin from around $20,000 has at one point peaked past the $24,000 mark.
However, this recovery is short-lived as the recession momentum shows signs of quickly returning. Because there is no support from macro factors as well as weak financial resources in the economy, the market has started to correct and erase the achievements of the past week. In the span of one day, the total crypto market value has lost more than $70 billion after the plunge and has now lost the $1 trillion market cap mark. There was even a time when the number bottomed out at $929 billion.
Currently, the total crypto market cap sits at $963 billion, down nearly $50 billion from its cap last week. The downtrend is returning, the market witnessed three consecutive days of decline and lost many important milestones.
The total cryptocurrency trading volume on the market over the last 24 hours is $62.51B, down 18.31% from yesterday. Total DeFi trading volume currently stands at $5.34B, representing 8.54% of the total 24-hour crypto trading volume. Bitcoin since peaking above $24,000 has continuously corrected and is currently down to a low of $21,000. Meanwhile, Ethereum has dropped to the $1,400 region and is currently trading around the $1,460 mark. This has dragged their market capitalization down to $408 billion and $178 billion, respectively.
However, the recent crypto market rally has brought many positives as investor sentiment quickly reacted well to bullish news. For the first time in two months, investor sentiment has successfully broken out of the extreme fear zone in the FGI index frame. With the recovery continuing, the sentiment score rose to close at a two-month high of 30 last week.
Although the downtrend has not been fully established yet, it is gradually becoming the mainstream trend in the near future. In the course of history, there will be rallies and drops in price, which will see the market establish new lows and highs in the future.
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