The bull cycle for the entire cryptocurrency market, including the world’s largest digital currency, Bitcoin, now appears to be over as bears appear to have taken control of the entire digital currency market. Currently, almost all cryptocurrencies on the market are trading bearishly. Bitcoin’s price has even fallen below the $ 50,000 mark.
Overall crypto market behavior bearish as BTC price fell to $ 49,000
After many weeks of bullish days in the first quarter of this year, the cryptocurrency market has now turned bearish as almost all digital asset prices have fallen. Bitcoin (BTC), the world’s leading digital currency by market value, has lost nearly eight percent of its value. The BTC price dropped to $ 49,000 today.
At the time of writing, Bitcoin’s price is around $ 50,200, and it’s down more than 7 percent in the past 24 hours, according to CoinMarketCap. However, it is not the only cryptocurrency on the market with a bearish sentiment, while many other major cryptocurrencies have seen their prices fall in recent days as well. Ethereum, the world’s second largest cryptocurrency by market value, suffered a huge loss after hitting its all-time high of $ 2,600 yesterday. In addition to Ether, Ripple’s XRP and Binance’s native cryptocurrency Binance Coin (BNB) also suffered price losses. BNB is currently trading at around $ 517 while the price of XRP is changing hands at around $ 1.14 at the time of writing.
Why are Bitcoin and other cryptocurrencies turning bearish?
US President Biden recently introduced a capital gains tax of up to 43.4% for the rich. This could be the reason for the sudden downward spike in all crypto markets.
Now, however, the price of Bitcoin is down around -23% from its peak. The market will recover as soon as there are no signs of a bearish trend. If no other bad news came or we could see BTC at a $ 45,000 level, that’s fine.