The global cryptocurrency market has suffered a decline of $ 125 billion in the past 24 hours, losing 6.21% of its market cap in the early morning hours.

The decline is led by bitcoin, which lost 4.63% and is trading near $ 47,330 at 5:33 am ET. The major cryptocurrency had briefly surpassed $ 50,000 for the first time since May following a flow of positive news, including the Coinbase cryptocurrency exchange announcing a $ 500 million crypto buying program. dollars and United Wholesale Mortgage, the second largest mortgage lender in the United States, starting to accept bitcoin for payment.

Despite the increase, some analysts remained cautious. “Medium-term regulatory headwinds in the United States and China remain,” noted Jehan Chu, founder and managing partner of Hong Kong-based crypto investment firm Kenetic Capital, in a message to Forbes. “The world’s largest exchange, Binance, remains under great pressure, and the worrying comments from SEC Chairman Gary Gensler on DeFi’s regulation could cut the legs off any sustained rally. Expect the short-term pump to find prices below $ 30,000 BTC if the broader US economic sentiment suddenly turns south, ”Chu warned.

The influx of coins to cryptocurrency exchanges is adding to the pressure, which means investors could prepare to sell. 22,803 BTC, or more than $ 1 billion, have passed on the exchanges since Friday, according to William Clemente, chief analyst at Blockware Solutions.

The second largest cryptocurrency, Ether, is also in retraction mode, having fallen 6.7% in the past 24 hours to $ 3,123. Altcoins are following the trend with XRP, Polkadot and Solana recording the biggest losses among the top 10 in the 9-11% range.

Unlike cryptocurrencies, the non-fungible token market is reaching new heights. With the news of the payments giant Visa buying its first NFT for $ 150,000, NFTs have taken on a new wave. The trading volume of the NFT CryptoPunks collection, one of which was bought by Visa, increased 430% this week, according to DappRadar. One of those algorithm-generated characters sold for $ 5.33 million overnight. The leading collectibles marketplace OpenSea set several daily records this month, hitting a new high of $ 209 million in transaction volume yesterday, according to data from Dune Analytics.

Additionally, Budweiser appears to be the latest brand to jump on the NFT bandwagon. The company has changed its Twitter profile picture to that of a rocket designed by NFT artist Tom Sachs. The company may also have purchased a beer.eth domain name, CoinDesk reports.

Leave a Reply

Your email address will not be published.