The majority of the current cryptocurrency market appears to be in a stagnant, bearish phase as of late for unknown reasons. Some tokens are still performing well in terms of trading activity. However, prices for most are sitting still or slumping over the past few weeks. Some of the biggest tokens, like Bitcoin, Dogecoin, and even SHIB, aren’t performing as strongly as they did at the beginning of 2024.
There is much speculation about why the cryptocurrency market has been down. Multiple catalysts are out there, despite plenty of reasons for the market to be bullish. Here are some factors that may be contributing to the market feeling stuck.
Bitcoin ETF Hype Has Slowed
Likely the most obvious reason behind the cryptocurrency market being down is the performance of the biggest cryptocurrency, Bitcoin. Over the past week, the leading cryptocurrency has fallen more than 6% according to CoinMarketCap. The asset’s market value has also decreased, while its trading volume surged over 290% in the past few days.
Since the start of the year, Bitcoin’s performance has been closely connected to its Spot ETF approved in January. That connection has likely been a reason for its recent downturn. Withdrawals are ongoing from these Bitcoin products, and as outflows occur, less investment is going into the products. Thus, the lack of positive performance around Bitcoin leads to the same sentiment for other popular cryptocurrencies.
Also Read: BRICS Officially Pause Admitting New Nations Into the Alliance
The Cryptocurrency Market Anxiously Awaits Ethereum ETFs
A catalyst for a potential market boost could be the launch of Ethereum ETFs, however, we are still counting down the days until this happens. The launch of Spot Bitcoin ETFs propelled the cryptocurrency market to new highs. Thus, investors are hopeful the same will happen with Ethereum. Until that happens though, the overall market will likely remain the same.
Growing Unrest And Uncertainty In The Cryptocurrency Market
As there is growing unrest and uncertainty in the broader crypto market, the bulls aren’t latching onto any particular asset. As mentioned previously, the leading cryptocurrency by market cap, Bitcoin, is on a bearish trend. XRP, SHIB, and other assets are also on a red path on the charts.
Also Read: Cryptocurrency: 3 Top Tier Coins To Buy If You Like XRP
This unrest will likely be cured by two things: the end of the Ripple Vs SEC lawsuit; and the arrival of Ethereum ETFs. The dream of this summer being the “crypto summer” is still possible, but rests in a precarious position.