What is the reason behind today’s cryptocurrency slump? A temporary market chill.
The global cryptocurrency ecosystem experienced a significant downturn after enjoying a string of positive days in the past month. On March 5th, Bitcoin (BTC) reached an unprecedented high of $69,170, with a total market capitalization exceeding $1.4 trillion. However, as the market began to cool down, the flagship cryptocurrency took a sharp dive below the $60,000 threshold.
A chart presented by CryptoQuant’s head of research, Julio Moreno, on X showcased the Bitcoin heatmap since the beginning of the year. As BTC surpassed the $60,000 mark, the data revealed that the leading digital currency was in the overheated zone.
Following the drop in Bitcoin’s price, the global cryptocurrency market capitalization also declined by 1.4% in the past 24 hours, falling from $2.68 trillion to $2.58 trillion.
On the other hand, the daily trading volume of cryptocurrencies increased by 27%, reaching $317 billion in the past 24 hours, as reported by CoinGecko.
Santiment’s data disclosed that many users on X and Reddit are currently discussing whether to hold onto their crypto assets during the recent price dip. According to the market intelligence platform, some users believe that the price dip might be an opportune time to buy Bitcoin in anticipation of a further price rally.
Furthermore, Santiment’s data indicates that Bitcoin’s investor sentiment is currently hovering between neutral and slightly bullish at the current price point.
Despite the overall market decline, Shiba Inu (SHIB) remains in the bullish zone, according to Santiment. Notably, SHIB has experienced a remarkable 230% rally in the past seven days and has reached levels not seen since late 2021.
