What has caused the drop in crypto today? A potential opportunity zone emerges.
The global market for cryptocurrencies experienced a significant decrease, with data from Santiment indicating that the majority of tokens are in the opportunity zone.
According to CoinGecko, the global market capitalization of cryptocurrencies fell by 4.1% in the last 24 hours and currently stands at $2.49 trillion. However, the total daily trading volume increased by 16%, reaching $99.1 billion.
Higher trading volume typically brings greater volatility to the market. Additionally, the leading cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), saw decreases of 3.5% and 2.6% respectively.
At the time of writing, BTC is trading at $64,250, while ETH is hovering around $3,150.
It is worth noting that Bitcoin ETFs experienced an outflow of $120.6 million in the past day, according to data from Farside Investors. The BlackRock IBIT Bitcoin ETF recorded a day with zero inflows for the first time since ETFs were launched in the U.S.
Furthermore, the Grayscale Bitcoin Trust (GBTC) saw a net outflow of $130.4 million on April 24. This movement may be one of the main factors contributing to the bearish sentiment across the market.
On the other hand, Santiment’s data shows that over 85% of the assets listed on their platform are currently in the opportunity zone. The market intelligence platform shared in an X post that the market value to realized value (MVRV) ratio of these assets over one-month, three-month, and six-month cycles has triggered a buy signal.
However, there is a growing sense of fear among the masses following these declines in market capitalization. Santiment notes that “buy the dip” has seen a significant surge in popularity on social media platforms, accounting for 35.97% of total crypto conversations.
Most of this social activity is happening on Reddit and X, while Telegram and Bitcointalk have a smaller share, according to Santiment.
Read more: Capital inflows into spot Bitcoin ETFs total $31m
