Of the top 10 most valuable cryptocurrencies, only Solana saw any positive action, with a 3% gain since Sunday
The price of bitcoin appeared close to recovering above $60,000 over the weekend but has slipped once again at the start of the week, dropping below $58,000 on Monday morning.
Several other leading cryptocurrencies also suffered losses, including Ethereum (ether), Binance Coin and Cardano (ada).
Of the top 10 most valuable cryptocurrencies, only Solana (SOL) saw any positive action, with a 3% gain since Sunday.
The downturn saw the overall crypto market fall by more than 2% overnight, though it remains above the $2.5 trillion mark.
Despite a bit of turbulence, this is still technically a bull market, said Mati Greenspan, founder and CEO of Quantum Economics. So money coming off the large cap coins can easily find its way into some of the smaller ones.
Strategists cited a number of reasons for why Bitcoin and some of the other traditional cryptocurrencies have sold off, including China’s crypto crackdown and new U.S. tax-reporting provisions that are being viewed as unfriendly to crypto investors have also soured sentiment.
The bigger tokens had run very far, very fast so it’s just been a natural consolidation of the environment, of the price action, having risen so much in such a short period of time, Thomas Perfumo, Kraken’s head of business operations and strategy, said on Bloomberg’s “QuickTake Stock” streaming program.
To Bloomberg Intelligence’s Mike McGlone, it makes sense to see a bit of a breather for some of the tokens that hard run up so quickly.
For the broader market, I see a wall-of-worry, back-and-fill within the bull market, he said. Shiba Inu is getting too expensive, which was a bit of a too-hot signal for the entire market, like Doge was in May.
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