The total value of the cryptocurrency market decreased by 1.4% to reach $2.97 trillion on Wednesday, dipping below the $3 trillion mark following unsuccessful attempts to regain momentum. Bitcoin was trading at approximately $86,900, struggling to maintain a position above $90,000 for the third consecutive day. Meanwhile, ether experienced a decline of 1.5%, landing around $2,927.
Several other cryptocurrencies faced more significant losses, with solana dropping nearly 3% and XRP falling almost 2%. This downturn occurred despite several stock indexes achieving record highs, which indicates a shift in investor preference towards safer assets. The MSCI’s All Country World Index gained for a fifth day, now showing a 21% increase for the year.
According to Alex Kuptsikevich, chief market analyst at FxPro, the cryptocurrency market is exhibiting signs of increased seller dominance, with repeated attempts at recovery failing to last. He noted that the current market behavior suggests a potential shift into a bear phase, as larger participants opt for cautious selling. Flows data from CoinShares revealed that $952 million left global investment products last week, with Bitcoin and Ethereum funds experiencing significant outflows.