Bitcoin (BTC), ethereum (ETH), ripple (XRP), and other top 10 coins by market cap are down, sliding from recent peaks. Coins may post even more losses over the weekend.
Cryptocurrency prices are struggling to regain momentum as the market grapples with several challenges, such as diminished liquidity, increased regulatory scrutiny in the United States, and macroeconomic headwinds.
As the crypto market heads for a looming downturn, bitcoin experienced a dip below the $27,000 threshold on May 11 at approximately 5 a.m. ET, trading at $26,312.23, the lowest level since March 17. At time of writing, BTC sits at $26,452.83.
Bitcoin prices are declining due to decreased liquidity, congestion on the Bitcoin blockchain, and increased regulatory scrutiny in the US, leading to negative sentiment in the crypto sector.
Furthermore, the dwindling correlation between bitcoin and stocks suggests a reduced impact of macroeconomic factors on digital assets compared to the broader global markets.
Ethereum, the second-largest cryptocurrency in the market, has also experienced a decline in price, dropping by 2.7% within the past 24 hours and 7.1% in the last week. The cryptocurrency is currently trading at $1,772
The key support level at $1,800 has now transformed into a resistance level, indicating a significant structural change, as part of a broader sell-off across the crypto market, with various altcoins also being affected by the prevailing bearish sentiment.
Ripple’s downward trajectory gained momentum this week, resulting in a substantial 6.6% decline in its valuation this week. XRP now sits at $0.429.
Looking ahead, it appears sellers have taken the reins, and the prevailing scenario indicates a greater likelihood of XRP’s price descending further towards the support at 40 cents.
This decline came in spite of Ripple releasing a report highlighting the significance of central bank digital currencies (CBDCs) and emphasizing the prominent role that Ripple, the blockchain company; along with XRP, is poised to assume in the future economy.
As the weekend approaches, traders should prepare themselves for a potential downturn, as prominent cryptocurrencies like cardano (ADA), dogecoin (DOGE), solana (SOL) and polygon (MATIC) are experiencing declines ranging from 5% to 14%, signaling a wider market trend.