Crypto Market Cap Hits 8 Month Low Amid Bearish Sentiment
Total crypto market capitalization has dropped to $2.93 trillion, an eight-month low, erasing all gains for 2024 and marking a 33% decline from the $4.4 trillion peak in October. The market has been mostly range-bound since March, now sitting mid-range after a recent dip. Short-term sentiment remains bearish, with analysts predicting further downward movement, particularly after the Bank of Japan raised rates to 0.75%. Despite this, Bitcoin rose 2.3%. Observers suggest further volatility could lead to a sharp decline in altcoins, followed by a quick rebound. Some see the pullback as a potential buying opportunity, pointing to long-term sector maturity and institutional interest. Social sentiment is at "extreme fear" levels, with the Crypto Fear & Greed Index at 16 and bearish commentary dominating online discussions. Historically, high fear levels have sometimes signaled market bottoms.
