Crypto Market Cap Falls To 8-month Low, Analysts See More Pain Ahead
The total crypto market cap fell to $2.93 trillion, its lowest since April, erasing yearly gains as analysts anticipated further declines.
The total crypto market capitalization has fallen to an eight-month low, wiping out all gains this year, as analysts remain bearish in the short-term.
Total market capitalization fell to $2.93 trillion in late trading on Thursday, its lowest level since April, according to CoinGecko.
The total market value of crypto has declined by around 33% since its all-time high of around $4.4 trillion in early October and is down almost 14% since the beginning of this year, prompting many analysts and observers to claim the bear market is underway.
It fell to a 2025 low of $2.5 trillion on April 9 before recovering to all-time highs six months later. The crypto market cap has been largely range-bound since March 2024, and it has now returned to the middle of that range.
MN Fund co-founder Michaël van de Poppe predicted on Friday that more short-term pain is likely and the trend will continue downward until the Bank of Japan makes its decision on interest rates.
Japan’s central bank raised rates to 0.75% Friday morning, and while some analysts have said this will be bad news for crypto, Bitcoin (BTC) climbed by 2.3%.
“Wouldn’t be surprised if BTC continues to cascade and gets itself into a form of capitulation in the next 24 hours, as the trend clearly is down,” van de Poppe said. “That would mean -10/20% move on altcoins, which then should be bouncing quite quickly.”
The recent decline in total market capitalization “reflects a broader correction driven by macroeconomic pressures and reduced risk appetite among investors,” Nick Ruck, director of LVRG Research, told Cointelegraph.
“While short-term volatility persists, this pullback presents potential accumulation opportunities in fundamentally strong projects as the sector continues to mature and attract institutional capital,” he said.
Source: CoinTelegraph
