Markets
Top reasons why the cryptocurrency market is down today
Despite today, the altcoin industry continued with Thursday’s choppy markets The price of Bitcoin (BTC). recovering from the $67,500 support level. Despite Friday’s choppy markets, the altcoin industry signaled an inevitable near-term rebound amid increased demand from institutional and retail investors.
Additionally, the US-based commercial Bitcoin ETFs have recorded more than ten consecutive days of cash inflows. Additionally, the cryptocurrency industry is eagerly awaiting the trading of Ethereum (ETH) spot ETFs in the United States.
The main reason why cryptocurrencies seem unstable
The calm before the storm
After two months spent trapped in a correction mode, most cryptocurrencies have signaled an inevitable bullish rally ahead. According to on-chain data, the accumulation rate of crypto whales is at an all-time high, thus indicating more volatility ahead.
Political uncertainty in the United States
As the general election in the United States approaches, the issue of cryptocurrencies is becoming increasingly mainstream in both political circles. Former US President Donald Trump was found guilty of 34 counts of falsifying business records on Thursday and is scheduled to be sentenced on July 11.
Notably, Trump had previously supported the cryptocurrency industry and pledged to never allow the Fed to create a CBDC. Among other promises, Trump has gained popularity among cryptocurrency investors in the United States. Therefore, his case further complicates the issue.
Meme Coin Frenzy
Dozens of meme coins have emerged in recent weeks, some of which have gained traction while others have gained traction. More and more cryptocurrency investors have been directing their resources towards the meme coin industry to maximize earnings at the expense of utility-based projects.
According to on-chain data, Dogecoin (DOGE) whales have followed Pepe (PEPE) investors in similar fashion by accumulating over 700 million coins, worth around $112 million, in recent days.
Also check: Consolidating Altcoin Market Cap Before a Big Breakout: Here’s When an Altseason Can Start