Future

Bitcoin

USDC

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Significant downturn observed in the crypto market with major cryptocurrencies like Bitcoin witnessing a drop.</li> 
 <li>Miner capitulation, decreased stablecoin issuance, and ETF outflows are contributing to the market decline.</li> 
</ul>  
<p>The global crypto market has seen a considerable downturn recently, with the market cap dropping from over $2.8 trillion to just below $2.5 trillion in a few weeks. </p> 
<p> This decline has affected major cryptocurrencies, including <a href="https://coineagle.com/price/bitcoin/">Bitcoin</a> [BTC], which has seen a 7.9% drop in the last fortnight.</p> 
<h2 id="factors-behind-the-downturn">Factors Behind the Downturn</h2> 
<p>Market analysts attribute several factors to these market conditions. One such factor is miner capitulation. </p> 
<p> A significant drop in miner revenues has forced miners to offload Bitcoin to cover operational costs, increasing the selling pressure in the market. </p> 
<p> Additionally, the lack of new issuances of major stablecoins like USDT and USDC has led to reduced market liquidity. </p> 
<p>The market is also facing pressure from significant outflows observed in major cryptocurrency exchange-traded funds (ETFs). </p> 
<p> These withdrawals reflect a sentiment of caution among crypto investors due to the uncertain macroeconomic landscape. </p> 
<p> This selling behavior extends to short-term holders as well, suggesting that the market is still dominated by long-term holders.</p> 
<h2 id="future-prospects">Future Prospects</h2> 
<p>Despite the downturn, indicators suggest that the market might be nearing a bottom. </p> 
<p> Factors such as subdued activity from traders and large investors, coupled with limited liquidity from stablecoins and diminished U.S. investor interest, are currently dampening crypto market dynamics. </p> 
<p> However, a notable uptick in Bitcoin transactions exceeding $100,000 signals increased activity from large-scale investors, which could indicate a shift in market momentum. </p> 
<p>Prominent crypto analyst Ali suggested that if the current market cycle follows previous patterns, we might not see a peak until late 2024 or 2025. </p> 
<p> Meanwhile, despite these downturns, reports suggest that we are still in a crypto bull market.</p>

Understanding the 3 Leading Causes of Bitcoin’s 7% Decline in Fortnight

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CoinEagle.com

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