- Binance stopped BTC withdrawals and the crypto market capital fell 3.2% to $1.2 trillion in 24 hours.
- The exchange’s action followed massive network congestion for Bitcoin amid increase in fees as tokens with inscriptions and ordinals pumped.
- Bitcoin’s (BTC) market cap dropped to $540 billion, a 45% dominance.
According to the latest data, the total market cap of cryptocurrency is down 3.2% in 24 hours. Bitcoin (BTC), and Ethereum (ETH), the top two digital assets in terms of market capitalization, are both down over 3% during the same time period. They have also fallen -5.4% compared to the previous seven days.
BTC is now trading below $28,000, while Ether is near $1850, amid wider selling pressure on crypto.
Pepe (PEPE), Sui (SUI), and other top 100 coins have seen a performance of -12% in the last 24 hour.
Why crypto market is down today – look at Bitcoin
The traditional markets continue to see some negativity as traders place new bets on regional banks plummeting again following last week’s bounce. The outlook isn’t the same for crypto and Bitcoin indeed rallied as multiple US bank stocks dumped.
Why is the crypto market capitalization down? BTC has been unable to move higher after the rejections of $30,000. The latest decline could be the result of panic selling. Data such as those showing massive BTC outflows at the Binance Exchange suggests this.
BREAKING: #Binance Data confirms that the withdrawal is the largest in history at 162,000 $BTC Over $4.6 Billion worth of shares has been sold at the exchange.
What are the chances of whales/insiders jumping ships? 👀 pic.twitter.com/QSXYAEvHkt
— WhaleWire (@WhaleWire) May 7, 2023
Binance addressed the “outflows” funds movement between its hot and cold wallets amid the adjustments in BTC address. It comes after the exchange had suspended Bitcoin transactions due to massive congestion in the flagship network. It’s a scenario that saw transaction fees spike significantly.
On Sunday, for example, the transaction fee in BTC block 788 695 was 6.7 BTC. This is higher than block subsidy which is 6.25 BTC. Data from the blockchain shows that Bitcoin’s blockspace demand spiked, driving transaction fees higher.
According to Glassnode’s on-chain analysis platform, BRC-20 is driving the demand for blockspace. As shown by Stacks’ (STX) 9% gain in spite of the BTC price drop, tokens using inscriptions and ordinals are on the rise.
#Bitcoin BRC-20 tokens that use text-based inscriptions and ordinals have led to a high demand for blocks.
The average block fee has now reached 2,905 $BTCThe bull peak is nearing its end
📊https://t.co/DyVjODagG9 pic.twitter.com/8ZV0i4DNzm
— glassnode (@glassnode) May 8, 2023
Bitcoin’s market capitalization is now $540 billion. This represents a 45% share of the market. Ethereum‘s market dominance currently stands around 18.6%
Bitcoin price prediction
The announcement that Binance had suspended BTC withdrawals – on two occasions – looks to have spooked a few traders into action. However, the crypto market capital could recover some losses in advance of an important week for economic news. Binance also targets Bitcoin Lightning Network.
Crypto analyst Michael van de Poppe says that Bitcoin’s price could bounce at levels as low as $27.4k, or even $26.8k.
“Mentioned before that $29.2K was the key level to break for #Bitcoin. There was a slight bounce, but not a break. Additionally some FUD regarding #Binance doesn’t help. Looking at $27.4K or $26.8K for potential longs towards the CME gap at $29.6K,” the analyst tweeted Monday morning,
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