Another Drop in Market Capitalization for Crypto Coins
The overall market capitalization of the crypto coins has seen changes over time. However, it has witnessed another fall by 1.5%. While the impact might seem low to an average Joe, for crypto traders and investors it means a huge change in the valuation of their investment portfolio.
A change in the market capitalization means a loss of investor wealth. As a result, it has led to a huge impact on the overall investor wealth. With a drop in market cap, it changes a lot for people in the crypto realm.
As the market continues to change, keeping an eye on the latest changes is vital. Choosing the Alpha AI trading bot will help you set trading parameters and come up with the right strategies. It would come up with the right strategies by considering the right dynamics.
Fall in Market Capitalization
The overall crypto market capitalization went down to $2.27 trillion, which shows a decline of 1.5%. With that decline, it is close to the April low, which is just above $2.22 trillion. While many expected the pressure on the market to decrease due to the halving, the opposite of the beliefs and expectations. This complies with the adage "Buy the rumor, sell the news".
Not only that, but the strongest altcoins started to feel the heat as well. The top coins, such as Ethereum and Solana saw a drop of 4% in the last 24 hours, which is higher than some top altcoins. Furthermore, Bitcoin went down to $61.6K losing 1.5%, which sees a sharp reverse to the downside as active Asian trading begins.
Drop in Crypto Fund Investments
The crypto fund investments saw a drop of $435M last week according to CoinShares data. Furthermore, it comes after outflows of $206M the week before, which shows a consecutive outflow in the third week. While Solana investments were up $4M, Bitcoin and Ethereum investments were down by $423M and $38M respectively.
The majority of the outflows, which amount to $440M were from Grayscale's Bitcoin fund. Furthermore, CoinShares noted that different altcoins saw an inflow of investments. However, the fund's inflow to other Bitcoin-ETFs fell sharply simultaneously.
News background
Bernstein Private Wealth Management expects the inflows into Bitcoin-ETFs will go back after a short while. They believe that short-term pauses will go away as soon as the ETFs see greater integration with the platforms of private banks, wealth advisers, and brokers.
Furthermore, Bloomberg believes that there is a possible approval of a spot Bitcoin-ETF in Australia on the cards. Additionally, Tether's USDT, which is the segment leader, is falling behind the USDC stablecoin in terms of the number of transactions per month. Simultaneously, USDC is lagging in terms of capitalization by thrice from USDT.
