Bitcoin (BTC), ethereum (ETH), ripple (XRP) and the top 10 coins by market cap are all down, slipping from recent peaks. Coins may post even more losses over the weekend.
Cryptocurrency prices are struggling to regain momentum as the market faces various challenges such as declining liquidity, increased regulatory scrutiny in the United States, and macroeconomic headwinds.
Bitcoin
As the crypto market heads towards an impending recession, bitcoin plunged below the $27,000 threshold on May 11 at approximately 5am ET, trading at $26,312.23, the lowest level since March 17. .
Bitcoin prices are falling due to declining liquidity, congestion on the Bitcoin blockchain, and increased regulatory scrutiny in the US, leading to negative sentiment in the cryptocurrency sector.
Additionally, the declining correlation between bitcoin and equities suggests a reduced impact of macroeconomic factors on digital assets compared to broader global markets.
Ethereal
Ethereum, the second largest cryptocurrency on the market, also saw a drop in price, falling 2.7% in the last 24 hours and 7.1% in the last week. The cryptocurrency is currently trading at $1,772
The key support level at $1,800 has now transformed into a resistance level, signaling a significant structural change, as part of a broader sell-off across the crypto market, with several altcoins also being affected by the prevailing bearish sentiment.
Vibe
Ripple’s downward trajectory gained momentum this week, resulting in a substantial 6.6% decline in its valuation this week. XRP is now sitting at $0.429.
Looking ahead, it appears that the sellers have taken the reins, with the prevailing scenario indicating a higher probability of XRP price falling further towards the 40 cent support.
This decline came despite Ripple publishing a report highlighting the importance of central bank digital currencies (CBDCs) and emphasizing the prominent role that Ripple, the blockchain company; along with XRP, it is ready to take on the future economy.
As the weekend approaches, traders should prepare for a potential downturn as prominent cryptocurrencies such as cardano (ADA), dogecoin (DOGE), solana (SOL) and polygon (MATIC) are seeing declines ranging from 5% to 14%, indicating a broader market trend.
