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Why is the cryptocurrency market down? Almost all tokens are locked
Most of the current cryptocurrency market seems to be in a stagnant and bearish phase lately for unknown reasons. Some tokens are still doing well in terms of trading activity. However, prices for the most part have been stagnant or declining in recent weeks. Some of the larger tokens, such as Bitcoin, Dogecoin, and even SHIB, are not doing as well as they were in early 2024.
There is a lot of speculation as to why the cryptocurrency market is down. There are multiple catalysts, despite many reasons for the market to be bullish. Here are some factors that could be contributing to the market feeling stuck.
The hype around Bitcoin ETFs has slowed
Probably the most obvious reason for the cryptocurrency market’s decline is the performance of the largest cryptocurrency, Bitcoin. Over the past week, the leading cryptocurrency has fallen by more than 6%. CoinMarketCap. The asset’s market value has also declined, while its trading volume has increased by more than 290% in recent days.
Since the beginning of the year, Bitcoin’s performance has been closely linked to its Spot ETF approved in January. This connection was probably the reason for its recent recession. Withdrawals from these Bitcoin products are ongoing, and as outflows occur, less is invested in the products. Therefore, the lack of positive performance around Bitcoin leads to the same sentiment for other popular cryptocurrencies.
Source: WatcherGuru
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The cryptocurrency market is eagerly awaiting Ethereum ETFs
One catalyst for a potential market boost could be the launch of Ethereum ETFs, however, we are still counting the days until this happens. The launch of Spot Bitcoin ETFs has pushed the cryptocurrency market to new highs. Therefore, investors hope that the same will happen with Ethereum. Until that happens, the overall market will likely remain the same.
Growing unrest and uncertainty in the cryptocurrency market
As turmoil and uncertainty grows in the broader cryptocurrency market, bulls are not fixating on any particular asset. As mentioned above, the leading cryptocurrency by market capitalization, Bitcoin, is in a bearish trend. XRP, SHIB and other assets are also on a red path on the charts.
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These turmoil will likely be resolved by two things: the end of the Ripple Vs SEC lawsuit; and the arrival of ETFs on Ethereum. The dream of this summer being “crypto summer” is still possible, but it remains in a precarious position.