Since Luna fell sharply on May 11, cryptocurrencies have continued to fall under the bear market trend, and the selling pressure of cryptocurrencies remains on the whole. Although Bitcoin has tried to recover, its returns also disappeared quickly, falling by $1.26 trillion in 24 hours, a drop of 3.37%. Mainstream cryptocurrencies including Ethereum, Solana, Cardano, XRP and Dogecoin all followed Bitcoin’s weekly decline.
BuyUcoin CEO Shivam Thakral said investors are considering cashing out, while those who stay on cryptocurrencies are in a "waiting and watching mode", and Bitcoin and the most influential cryptocurrencies are known for their extraordinary strength and rebounding capabilities despite their volatility. However, other less well-known cryptocurrencies - According to Business Insider, more than 19,000 cryptocurrencies have suffered a terrible blow.
"Business Insider" gives the situation of the five worst-performing currencies this week. Zcash, Cosmos, Apecoin, Elrond and Avalanche fell sharply in the cryptocurrency bear market. CoinMarketCap data on May 27 showed that TerraClassic USD fell 46.50% in seven days, followed by Elrond EGLD, down 25.17% during the same period. Avalanche ranked fourth with a weekly decline of 22.58%, while ApeCoin ranked sixth with a weekly decline of 19.88%. Zchash has fallen 18.32% over the past seven days, with Cosmos, with a market capitalization of $2.8 billion, losing 15.64% per week.
What does this mean except that the entire cryptocurrency sector has declined and bottomed out and rebounded far away? Keeping a close eye on weekly winners and losers helps investors understand the trend and determine to get more upward traction coins. Less well-known cryptocurrencies are high-risk investments, and while they can generate huge losses or huge returns in a short period of time, they are extremely volatile.
cryptocurrency crash and its current downward trend are not isolated. They are influenced and driven by global and American economies that are facing economic slowdowns caused by post-pandemic recovery, inflation, rising consumer spending, rising gas prices, Ukraine’s war and supply chain issues. These factors are all the reasons that led to the decline of the Nasdaq and S&P 500, affecting tech stocks and creating a domino effect on cryptocurrencies, according to the Wall Street Journal.
Market confidence and investors' perceptions of cryptocurrencies are also one of the factors. Many investors have decided to cash out or transfer their digital assets to a safer portfolio, at least until the storm is over. Taylor Carmichael wrote for Motley Fool that even the cryptocurrency crash in 2022 looks just a slight swing on the chart in time. Although it could hit trillions of dollars in losses. He reminded investors that there have been many collapses in the market over the past few decades, each after a recovery.
returns to the hottest cryptocurrency, with Bitcoin and Ethereum down 36.68% and 46.43% year to date respectively as of today.
