Home Latest Max pain scenario intensifies as Bitcoin drops to $31K, altcoins sell-off

Max pain scenario intensifies as Bitcoin drops to $31K, altcoins sell-off

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Bitcoin trading remains volatile, with BTC dropping to $ 31,000 on Sunday evening. Thus, the price has more than halved in comparison with April values, when the price exceeded the $ 64,000 mark.

Altcoins follow the mainstream cryptocurrency and are also losing value. On May 23, most tokens fell to multi-month lows.

Ethereum (ETH) dropped in price by 17% per day, which led to a decrease in its value to below $ 2,000. Thus, ETH is trading 54% below the all-time high of $ 4362.

Regarding other popular cryptocurrencies: Cardano cryptocurrency fell to $ 1.056, Binance Coin – up to $ 219, Dogecoin – up to $ 0.25, XRP – up to $ 0.6542, Polkadot – up to $ 13.96, Bitcoin Cash – up to $ 471, Lite Coin up to $ 118 and Ethereum Classic up to $ 40.42. In comparison with the values ​​on Sunday, now the rate of each cryptocurrency has grown slightly.

Note that Binance Coin dropped to fifth place in terms of market capitalization, leaving Tether and Cardano to the top. The positions of Bitcoin and Ethereum so far remain unwavering – $ 663.3 billion and $ 250 billion, respectively. True, a few weeks ago, Bitcoin’s market capitalization reached $ 1.4 trillion.

Reasons for the decline in cryptocurrency quotes

The cryptocurrency quotes were seriously influenced by the statement of three associations of the banking and Internet industry in China that the country’s financial and payment institutions should not accept cryptocurrencies as payment or offer related services and products. According to the report, Bitcoin is not a real currency, which means it shouldn’t be used as a means of payment in the market.

Another reason for the decline in the rate is Elon Musk’s statements about the termination of the sale of Tesla for the main cryptocurrency and about a possible reduction in investments in the token against the background of already existing doubts about the growth of the digital asset.

Bitcoin reached its all-time high on April 14, when the most popular cryptocurrency cost $ 64,854 per coin. Thus, Bitcoin lost almost half of its value in a month.

Bitcoin dominance continues to decline

Until 2017 Bitcoin’s dominance has almost always exceeded 80% of the total market capitalization. But at the moment, Bitcoin’s dominance rate is 46.9%.

However, Bitcoin remains the largest cryptocurrency, and most of the TOP20 largest altcoins since 2013 have almost completely disappeared, and new projects have taken their place.

Although, according to experts, the current short-term correction may turn into a medium-term downward trend that will last until mid-June.

Experts give a more positive forecast for the quotes of other tokens. The current negative trend is superimposed on the redistribution of investor portfolios towards altcoins. So, the decline in their rates will be quite smooth due to the support of players taking their investments from Bitcoin. At the same time, Ethereum will not necessarily become a clear favorite. Investors can also turn their attention to Cardano, Polkadot, Stellar and Ripple.

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