Crypto markets “dragged down by bears”

14 Jul 2021

The majority of cryptocurrencies declined on Wednesday as bearish sentiment continued to drive prices lower.

Not taking into account coins pegged to the U.S. dollar, the top 10 traded cryptocurrencies have fallen 25% over the past 24 hours.

Bitcoin - the world’s largest cryptocurrency by market cap - dropped 8%, whilst Ethereum – the second largest - fell 21%, reports Economic Times.

In addition, Binance Coin, XRP and Cardano also declined double digits.

According to analysts, this trend may continue for a while yet, as the sell-off occurred at a comparatively higher volume.

Edul Patel, CEO and co-founder of Mudrex commented: “The markets are currently dragged down by bears. Although this was not a major panic selling session, the momentum prevailing across the markets is pretty bearish. BTC is toying with the $33,000 level. ETH fell below the $2,000 mark creating a sense of scare across altcoins. This sort of volatility can be expected to continue throughout the week.” 

Crypto trading volumes suffered a steep drop in June, as per Cryptocompare data. Overall, trading declined 40%, with spot volumes experiencing the largest fall, with users trading 42.7% less in June compared to May.

In total, says the data, $2.7 trillion was traded last month.

Cryptocompare stated: “Headwinds continued as China persisted with its crackdown on Bitcoin mining. As a result of both lower prices and volatility, spot volumes decreased.”

However, Wednesday didn’t just see selling within the crypto market, as global equities also faced pressure. 

The principal reason behind this is the higher than forecast rise in inflation in the United States, which drove yields and the U.S. dollar up.

Indeed, the Labor Department said on Tuesday that the U.S. consumer price index rose 0.9%, surpassing market expectations and the largest gain since June 2008.