Crypto Market Faces challenges as Bitcoin and Altcoins Decline
The crypto bull run might be over as bitcoin and altcoins experience a downturn. The Crypto Fear & Greed Index has also dropped to its lowest point in months.
Bitcoin recently fell below $104,000, a level not seen since June. This decline pushed it into a bear market, with a 20% drop from its all-time high.
Why the crypto bull run might potentially be over:
- The crypto market cap, excluding major coins like Bitcoin and Ethereum, has fallen to $670 billion from $911 billion.
- The Altcoin Season Index has also dropped to 25.
- The Crypto Fear & Greed Index is now at 26, indicating investor fear.
These factors suggest the crypto bull run has paused. The global economy’s risks, including banking sector concerns and the U.S.-China trade tensions, have contributed to this decline.
Gold has emerged as a safer investment than crypto, attracting more investors.Bitcoin’s price pattern, known as a rising wedge, also signals potential trouble.
Will the crypto market recover?
History shows that Bitcoin often bounces back after corrections. Three factors could boost the market:
- The Federal Reserve may continue cutting interest rates.
- The upcoming U.S.-China meeting could ease tensions.
- Approval of altcoin ETFs could attract more investors.
These catalysts may help the crypto market rebound in the coming weeks or months.
