Crypto market slumps to 2-month low as bulls fail to sustain the rally

5 months ago
2 mins read

After a very short recovery period in which most major assets started to move in the upward direction, the cryptocurrency market is down once again, recording its lowest results in over two months.

Specifically, at press time (May 6, 9:12 UTC), the total crypto market capitalization stood at $1.66 trillion, which is a significant decline of 16.5% from the high of $2 trillion it previously reclaimed in late March and retained in early April. 

Total 3-month cryptocurrency market capitalization. Source: CoinMarketCap

By analyzing the charts on CoinMarketCap, it is clear that the current valuation of the entire crypto market is at its lowest since February 24, when it stood at $1.59 trillion.

Slumping prices and market sentiment

The dropping market cap has come hand in hand with the overall bearish behavior of its main participants, such as Bitcoin (BTC), which has dropped 8.22% in the past 24 hours, Ethereum (ETH), which fell 6.96%, and XRP which declined 5.25% on the day.

Meanwhile, some experts and a part of the crypto community have remained convinced that the bullish streak could be on the cards in the future. 

Indeed, the community voters at CoinMarketCap have estimated with high historical accuracy that, by the end of May, Bitcoin would trade at $46,245, Ethereum at $3,612, and XRP at $0.793.

That said, the feelings of FUD (‘fear, uncertainty, doubt’) in the crypto market are overwhelming, demonstrated in the increased social volume of calls for ‘sell’, ‘selling’, and ‘sold’, as Santiment noted on May 5.

Expert point of view

Elsewhere, crypto trading expert Michaël van de Poppe has observed that the previous price action of Bitcoin and Ethereum could indicate their breaking out upwards sometime in the near future.

On May 6, van de Poppe explained that, with its recent and sudden drop, Bitcoin has swept the lows, “which it also did in February,” and that it could be testing $34,000 unless it cracks the crucial breaker of $37,500.

Source: Michaël van de Poppe

However, if the flagship digital asset does manage to regain $37,500, he believes this would open the gates toward $40,400 “and then the markets are looking completely different.”

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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Ana Nicenko

Ana Nicenko has a plethora of knowledge and experience as a journalist covering the cryptocurrency and blockchain industries, having written for a variety of projects and organizations. Additionally, Ana has a master's degree in English Language and Literature. At Finbold, she reports news on the digital assets sector.