Market Wrap: Capitulation City as Bitcoin Dumps to $31K, ETH to $2K Before Reversal
Liquidations, China and even Elon Musk may be factors in markets falling.
The technical charts suggest further downside is likely as sellers react to extreme overbought conditions since March.
“Traders have certainly lost the appetite for bitcoin in this uncertain market environment,” Arcane Research wrote in a report.
The recent spike in trading volume could signal that when there’s a market move, interest and activity quickly return.
Binance led competitors in May with a monthly trading volume of $2.46 trillion, up 49% from April levels.
Meanwhile, the cost of gas fees on the Ethereum network is near a three-month low.
A sharp drop in OKEx’s trading volume and stablecoin reserves – tether in particular – may reveal an ongoing exodus of its users after the popular crypto derivatives exchange unexpectedly halted all crypto withdrawal activities for about five weeks.