Bitcoin is down 9.4%
over the past week, ending at around $31,000. Ethereum lost 16.1%, while other
leading altcoins in the top 10 fell from 13.9% (Binance Coin) to 25.4%
(Solana). The total capitalisation of the crypto market, according to
CoinMarketCap, sank 15% over the week to $1.30 trillion.
The bitcoin dominance
index jumped 2.9 points to 44.4% over the same period due to a sharp weakening
of altcoins. The cryptocurrency fear and greed index fell 8 points in the week
to 10 and continues to be in “extreme fear”. By Monday, the index had
climbed to 14 points, thanks to the cryptocurrency market’s retreat from local
lows at the end of last week. Bitcoin has declined for six weeks in a row,
along with stock indices.
A prolonged one-way
move in Bitcoin was last seen in late 2018 when the first cryptocurrency hit a
cyclical bottom. That was followed by many more months of sluggish momentum, so
investors have an essential question: choose a low point to buy or join the
move when it is certain. Prudence suggests that it is less risky to follow the
second strategy.
Last week’s decline
intensified after breaking through last year’s lows near $30,000, becoming the
most significant weekly drop since January. The story of the Terra (LUNA) crash
and the TerraUSD stablecoin project added to the negativity on the crypto
market, hitting all altcoins hard. According to Global Macro Investor CEO Raul
Pal, May and June will be the most worrying months, so a new wave of sell-offs
in the crypto market is inevitable.
Legendary investor
Bill Miller said he sold some of his BTC holdings. Although bitcoin may
continue to decline in the short term and even drop by half from current
levels, Miller looks at bitcoin positively and expects it to grow over a long
time. Robert Kiyosaki, the world-famous author of the bestselling book Rich
Daddy, Poor Daddy, is looking to buy bitcoin once it tests the ‘bottom’ at
$17,000. The businessman has once again expressed distrust of the US
government.
This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.