Crypto Market Sees Downtrends as Bitcoin Struggles Below $60,000

The total market capitalization of cryptocurrencies reached $2.27 billion, down 2.80%. Bitcoin ETFs, including BlackRock’s like IBIT, experienced significant discounts to their underlying assets, almost 1.8%.

Cryptocurrencies posted a mixed performance on Wednesday, but concerns about possible rate hikes eased following statements from the Federal Reserve.

Latest market developments: falling prices!

Bitcoin, the oldest and most valued cryptocurrency, fell below $58,000 on Thursday, wiping out recent gains. Other popular altcoins such as Ethereum, Dogecoin, Ripple, Solana and Litecoin also saw losses.

Axelar token, an exception, rose more than 11% in the last 24 hours. Arweave token, yesterday’s biggest gainer, suffered the biggest loss with a drop of more than 5% in 24 hours.

Trading volume in the crypto market increased by 17.39% to $106.2 billion in the past day. DeFi volume stood at $7.53 billion, accounting for 7.09% of the total 24-hour crypto market volume. The volume of stablecoins reached $98.41 billion and comprised 92.66% of the total crypto market volume.

Global news: influence of economic and geopolitical concerns

Bitcoin was trading around $57,000 following the US Federal Reserve’s decision to keep the benchmark interest rate between 5.25 and 5.50. Chairman Powell pointed to persistently high inflation as the reason for this decision. Bitcoin’s decline since February is seen as influenced by broader economic and geopolitical concerns, contributing to market corrections.

US spot Bitcoin ETFs saw outflows of over $500 million after the FOMC meeting, with BlackRock’s IBIT recording its first outflow of $37 million. Fidelity’s FBTC led with outflows of $191 million, more than Grayscale’s GBTC. All nine ETFs saw outflows, raising concerns amid market volatility.

Innovation and regulation in the blockchain industry

Zeus Network plans to launch the Zeus Program Library in the third quarter of 2024, aimed at seamlessly connecting the Solana and Bitcoin ecosystems. The Apollo Bridge Protocol facilitates the exchange of Bitcoin for ZPL-wrapped tokens, increasing usability on Solana platforms. Industry support signals potential impact.