Bitcoin has now fallen below $30,000 for the first time in a month, after having rebounded above this level following its recent drop to the $28,000 region. Market volatility has remained low, but the value of digital assets has continued to decline. As investors hold off on investing additional money into digital assets, market sentiment appears to stay in the high fear area.
Bitcoin continues to exhibit bearish tendencies, as bulls have been unable to pull the coin out of its three-month-long slump despite their best efforts. The digital asset price has broken through the key $30,000 hold that investors have sought to maintain. So far, market signs indicate that the digital asset may be on the verge of a further drop.
The value of the digital asset has now equaled the value of the coin at the start of the year 2021. This suggests that the market may be underestimating the extent of the current decline.
The Bitcoin Market’s Dominance Is Declining
Bitcoin, the first and most valuable cryptocurrency, has always maintained market supremacy over the other crypto assets available. At the start of the year, the coin’s market domination was well above 50%, but it has since dropped to less than 50%.
Following the price fall in May, the digital asset’s market dominance began to erode as rival crypto-assets began to pick up their game and gain market share. With cryptocurrencies like Ethereum gradually but steadily gaining market share.
When other crypto currencies gained popularity in 2017, Bitcoin’s supremacy began to wane. The digital asset’s market dominance fell from 95 percent to 52 percent in 2017, then rebounding to 70 percent while the last bear market went on. However, bitcoin has begun to lose some of its market supremacy, and it now has a market share of 46 percent.
It’s more likely that a Bear Market will emerge than a Bullish Setup.
Massive FUD in the market might indicate a negative trend rather than a bullish setting. There have been discussions over whether events like China’s anti-mining crackdown and crypto bans are a good signal for the crypto market as a whole, but the general opinion appears to be that the events will assist to increase the value of digital assets.
While this may be true in the long run, it does not appear to be beneficial for the long run thus far. As a result of the FUDs, market values have fallen, and the charts have remained in the red.
As long as investors are hesitant of putting money into the market, the price has suffered. Despite the fact that institutions such as Michael Saylor’s MicroStrategy remain optimistic on bitcoin.
Bitcoin is now selling at $29,764 per coin, with a market capitalization of $557 billion.
