The value of the first cryptocurrency continued to decline. Over the past day, Bitcoin has fallen in price by 10%, to current levels below $ 43 thousand. At the moment, cryptocurrency quotes fell to a new minimum since February at $ 38.5 thousand.
Altcoins have also taken a hit, with many altcoin prices plummeting over the past couple of days. Over the past 24 hours, the price of Ethereum fell by 15%, to $ 2.9 thousand, Binance Coin – by 18%, to $ 430.
The total cryptocurrency market capitalization is now $ 2.076 trillion, and Bitcoin’s dominance rate is 39.4%. At the same time, altcoin dominance rose to its highest level in about three years. Altcoins have gained momentum after recording a record total capitalization of about $ 1.5 trillion last week.
Despite the decline in the price of some altcoins, in general, tokens that have turned bullish have shown good gains. In contrast to Bitcoin, which seems to be stuck at its current level.
So, over the past 24 hours, the MATIC token has become the most profitable player with an astounding growth of 22%. MATIC hit new all-time highs on May 18, becoming the most productive cryptocurrency that day.
After MATIC was listed on the major exchange Kraken on May 17, the sharp rise continued, which began when the cryptocurrency exchange released the news earlier this month. As such, the 17th largest cryptocurrency by market capitalization outperformed all others in terms of daily and weekly profit.
Another important factor in the growth of altcoins is the fall in the dominance of Bitcoin.
Close behind MATIC was the Synthetix (SNX) network token with a 21% yield in the last 24 hours. Followed by Telcoin (TEL) with 17%.
Reasons for the decline in the Bitcoin rate
An active decline in quotations of digital assets began on Sunday, May 16. Then Elon Musk criticized Bitcoin, and rumors appeared on the network that Tesla getting rid of its savings in cryptocurrency. Despite the fact that the next day Musk denied the information about the sale, the market situation remained volatile.
The final decline came after it became known on May 18 that Chinese financial institutions were banned from providing services related to cryptocurrencies. The corresponding statement was issued by three financial regulators overseeing online financial transactions, the payments market and clearing.
All negative statements appeared at about the same time, which may indicate the manipulation of large players. According to experts, this can be done so that retail investors sell their cryptocurrency to “whales” at a favorable price.
However, analysts concluded that most likely, we are already near the minimum values of this correction. So, in the near future the decline will stop.
They stressed that the potentially strong support level for Bitcoin is $ 40,000. It is likely that a rebound could begin from this point.
A rebound can begin at any time, as soon as the bulk of market participants consider the price of Bitcoin attractive enough for purchases. Thus, the rise in the price of Bitcoin seems only a matter of time. Given the all-time low BTC supply on exchanges, growing institutional participation and the possible announcement of another stimulus package in the US, the outlook looks rather optimistic.