Bitcoin fell to the level of 39 thousand dollars
On May 19, the cryptocurrency market shows a significant decline in the prices of digital assets. The flagship cryptocurrency, Bitcoin fell to the level of$39,000 mark, increasing losses over the past seven days to minus 32%. The market has so far failed to react positively to the fact that the government in New Delhi plans to set up a panel of experts to review India’s existing strict regulation of digital assets.
Crypto-exchanges continue to receive bitcoins in large quantities: an inflow of 22,917 thousand BTC was recorded in one hour alone. This inflow of funds is notable because a similar figure was observed in March 2020, when bitcoin briefly touched the level of $3,500. Bitcoin inflows to the Binance cryptocurrency exchange, according to one analyst, are at an all-time high.
All this may indicate that the volume of bitcoin supply may be, at least for some time, more than the volume of demand. Although, knowing the behavior of big investors, as well as the trend among the #1 cryptocurrency miners to increase the volume of Bitcoin fell the last month, we can expect a trend reversal. The main intrigue remains where the “bottom” of bitcoin decline will be this time, and whether it will be a repeat of the March 2020 situation.
The current bitcoin price decline has significantly affected altcoins as well. Moreover, bitcoin, amid the depreciation of other digital assets, is beginning to gradually increase its share of the cryptocurrency market, having now passed the 40.2% mark. Ethereum gave up a lot, being cheaper than $3,000 and losing a little more than bitcoin over the last seven days (32.2% vs. 31.2%).
One of the cryptocurrency market newcomers, Internet Computer (ICP), which was in the top 10 in terms of capitalization on May 18, found itself on the 11th line on May 19. ICP has fallen in price by 30% overnight, having lost 59.5% in the last seven days. In the top 100 cryptocurrencies by capitalization, excluding stabelcoins, only Polygon (MATIC) is expensive, by 13%, to $2.38. Recently, the volume of transactions with MATIC reached 5 million a day.
Meanwhile, not all analysts believe that the current situation indicates a downward trend in prices of digital assets. Technical analysis shows that so far bitcoin and Ethereum support lines remain unaffected, which means that the cryptocurrency market can potentially quickly win back the current losses.
