Bitcoin fell below $106,000 on May 30 and was at around $105,197 after falling to an intraday low of $104,684. This is in keeping with increased geopolitical tensions and economic uncertainty that have pummeled the overall cryptocurrency market. The overall capitalization fell by 2.12%, to $3.34 trillion, per CoinGecko.
Altcoins Experience Deep Losses
The market capitalization of the second-biggest cryptocurrency, Ethereum, was similarly tight and fell 4% to $2,616. The drop is part of a larger trend where some of the larger altcoins have been falling. Dogecoin and Shiba Inu both fell 7.5% and 7.3%, respectively, and Avalanche fell 8%. Cardano, Solana, and XRP all fell between 4% and 5%, and Chainlink and Sui fell too. Binance Coin (BNB) fell by a smaller percentage at 2%.
Economic Reasons That Have Affected Prices
The decline of Bitcoin is explained by the market analysts through a sequence of economic reasons. Bad US economic signals in the way of decrease in GDP and increase in jobless claims also lowered the confidence level of the investors.
“Bitcoin must break through the $108,000 mark if it is to make sense,” Patel said. Without bidder support, it will probe the lower reaches of $103,700.
Institutional Demand Strong
Institutional backing of Bitcoin remains firm following recent losses. Crypto open interest also hit $75 billion, near all-time highs, which is a sign of a short squeeze setup.
Apart from that, Delta Exchange also witnessed a record $6.22 billion inflow into the iShares Bitcoin Trust ETF in May as evidence of long-term institutional appetite. Bitcoin market share dominance has increased to 63% with a market cap value of $2.1 trillion.
Future Outlook for Bitcoin and Altcoins
Short term, price action in Bitcoin will be coasting on staying above key support levels. The technicals are observing to see if and when Bitcoin will close above the $108,000 level, and if it closes above that, then that could be the door ajar for even higher gains.
Altcoins will be at the mercy of the mood of the market. The economic tensions and geopolitics that now form the background will dictate their path of travel over the next few weeks.
