This week, Bitcoin, Ethereum, Cardano and dogecoin all showed an upward trend on Thursday, as the active cryptocurrency market finally showed signs of recovery. During the plunge, an opportunity occurred, and the “bull and bear” moon phases were revealed. Especially dogecoin, after the good news that it was added to Coinbase was released, the price of Dogecoin, which has been sluggish, suddenly soared on Wednesday. In addition, the “Doge Legion” voiced on social media, asking Dogecoin’s loyal followers to increase the price of the coin, with a goal of “1 U.S. dollar”. As of the time of publication, the price of Dogecoin is 0.4 U.S. dollars.
May is one of the most unstable months for the U.S. economy. It is difficult for us to find a single reason to explain the entire market. Elon Musk’s short-lived tweets and China’s crackdown on Bitcoin are likely to be the fuse. It detonated the overheated derivatives trading market, billions of dollars of fully leveraged funds were forced to liquidate, and then the market spiraled downward in a vicious circle. Ethereum’s market liquidity is declining. However, the market was not only bad news in mid-May. Ethereum’s liquidity is rising healthily, and trading volume has repeatedly hit new highs. Even in the face of the market’s sharp decline, Ethereum’s liquidity still maintained a good increase.
Bitcoin and Ethereum also reached their peak of volatility in nearly a year in May.
From the perspective of monthly returns, it is a pity that only Cardano has maintained positive growth, close to 21%. Other top 10 cryptocurrencies, more or less, have been affected by this series of thunderstorms and have shrunk.
After the crazy May, the market sentiment was basically stable in June. Although the market sentiment was still “fear” on Thursday, it still maintained an upward trend despite a small shock, and overall it looked very healthy.
The only hidden danger at present may be the hidden risk from the uncertainty of domestic supervision. According to data from glassnode on Wednesday, the mining giant whale changed. There were 3,012 bitcoins flowing out of the wallet of the coin printing pool. As of press time, the value is 110 million U.S. dollars. If Chinese whales want to flee the market, the cryptocurrency market may usher in another wave of volatility and complete the change of chips.
Rekt Capital, a technical analyst on Twitter, believes that Bitcoin has broken through the downward trend, and in the short term, there will be more positive sentiment.
Although Bitcoin may have borne this wave of decline, the lapse of market confidence in Bitcoin has become a reality. According to glassnode data, Bitcoin transaction volume has fallen to a new monthly low.
The well-known analyst PlanB also showed optimism about the follow-up development of Bitcoin. He tweeted on Wednesday, “Every month’s end of the liquidation, there is a wave of large sales, and then at the beginning of the month, there is a continuous small purchase. These 4 V-shaped replies Trends, institutions are starting to buy again?”
But market bearish sentiment still exists. The chief data officer of investment analysis company MRB believes that the Bitcoin bull market is over. In an interview with coindesk, he said, “These assets are still entirely possible to develop into a mainstream investment tool, but we have reasons. I suspect that this process will be a very long road, and we still need to go through more stages of the bull-bearing transition.”