- The crypto market cap fell 3.2% to $1.2 trillion in the last 24 hours as Binance stopped withdrawing BTC.
- The exchange’s actions followed Bitcoin’s massive network congestion as fees increased as tokens with inscriptions and ordinal numbers were pushed up.
- Meanwhile, Bitcoin’s (BTC) market cap plummeted to $540 billion, dominating the market by 45%.
At the time of writing, the cryptocurrency market cap has fallen 3.2% to $1.2 trillion over the past 24 hours. The top two digital assets by market capitalization, Bitcoin (BTC) and Ethereum (ETH), have both fallen more than 3% over the same period, down -5.4% and -2.2% respectively over the past seven days.
As a result, BTC has fallen below $28,000 and Ether is trading near $1,850, creating widespread selling pressure on cryptocurrencies.
While most big cap tokens are down around 3-6%, Pepe (PEPE) and Sui (SUI) are the biggest losers among the top 100 coins, performing around -12% over the last 24 hours. .
Why The Crypto Market Is Falling Today – Look At Bitcoin
Traditional markets remain negative as traders make fresh bets on local banks, which have plummeted again following last week’s rally. The outlook for cryptocurrencies is not the same, and bitcoin actually rose as multiple US bank stocks fell.
But why are the crypto market caps falling? In particular, cryptocurrencies remain volatile and BTC finds it hard to top it after being rejected around $30,000. However, panic selling may be lurking behind this latest downturn, especially given data such as the massive exodus of his BTC from the Binance exchange.
preliminary report: #binance Outflow data confirms the largest ever withdrawal of over 162,000 $BTC has left the exchange worth over $4.6 billion.
Are whales/insiders jumping ships? 👀 pic.twitter.com/QSXYAEvHkt
— WhaleWire (@WhaleWire) May 7, 2023
binance handle “Exodus” funds transfer between hot and cold wallets in the adjustment of BTC addresses. This came after the exchange suspended bitcoin trading as its flagship network experienced massive congestion. This is a scenario where transaction fees have spiked significantly.
For example, the transaction fee for BTC block 788695 on Sunday was 6.7 BTC, higher than the block subsidy of 6.25 BTC. On-chain data shows that Bitcoin experienced a surge in blockspace demand, pushing up transaction fees.
High demand for blockspace is driven by the BRC-20 token, according to on-chain analytics platform Glassnode. Tokens that use inscriptions and ordinal numbers are on the rise as evidenced by a 9% rise in Stack (STX) amidst the decline in BTC price.
#bitcoin BRC-20 Tokens Utilizing Text-Based Inscriptions and Ordinal Numbers Driven by Extremely High Demand for Blockspace
This is an increase in revenue for miners as the average fee paid per block has reached 2.905. $BTCpast Bull Peak
📊https://t.co/DyVjODagG9 pic.twitter.com/8ZV0i4DNzm
— Glassnode (@glassnode) May 8, 2023
As such, Bitcoin’s current market capitalization has dwindled to $540 billion, accounting for about 45% of the market. Currently, Ethereum Market Dominance is about 18.6%
Bitcoin price prediction
The announcement that Binance has suspended BTC withdrawals twice seems to have surprised some traders into action. However, cryptocurrency market capitalization may recoup some of its losses ahead of a critical week of economic news. Binance is also reportedly eyeing Bitcoin Lightning Network transactions.
Crypto analyst Michael van de Poppe stresses that Bitcoin price levels of $27.4 thousand or even $26.8 thousand can provide bounce areas.
“Prior to that, we said $29.2K was a key level to break out of #Bitcoin. We bounced towards it, but there was no break. Plus, some of his FUD on #Binance doesn’t help. We see $27.4K or $26.8K as potential longs towards the CME gap at $29.6K.Analyst murmured Monday morning.
