The cryptocurrency market experienced a significant downturn on Wednesday, May 8, with major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) witnessing significant price declines. The bearish sentiment dragged down the entire market, affecting altcoin projects such as Solana (SOL), XRP (XRP) and Cardano (ADA).
Bitcoin fell below 63 thousand dollars
The pioneer of the decline was Bitcoin, the world’s flagship cryptocurrency. BTC price fell 1.54%, dropping below the critical $63,000 level and settling at $62,419.06 at the time of writing. This decline was accompanied by a significant decrease in trading volume; It decreased by 16.14% in the last 24 hours to 25.42 billion dollars. Bitcoin’s market value also fell to $1.22 trillion, reflecting the general negative mood.
Ethereum, the second largest cryptocurrency by market capitalization, followed a similar trend. ETH price decreased by 1.56% to $3,017.56. This puts it dangerously close to the $3,000 psychological barrier. Similar to Bitcoin, Ethereum’s trading volume dropped by a significant 16.74% to $11.48 billion.
Altcoins are feeling the squeeze
The bearish wave also spread to the leading altcoins. Solana (SOL), known for its smart contract functions, fell below the $150 level with a loss of 4.96% and settled at $147.04. Additionally, in the last 24 hours, trading volume decreased sharply by 21.94% to $2.53 billion. XRP (XRP), another popular altcoin associated with cross-border payments, fell below the $0.53 level, losing 2.96% to $0.5216. XRP’s trading volume also took a hit, dropping a significant 36.69% to $1.16 billion.
Cardano (ADA), the native token of the Cardano blockchain platform, could not escape this situation. ADA price fell 1.70% to settle at $0.4418. Trading volume also decreased by 19.24% in the last 24 hours, reaching 297.88 million dollars. Even meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) were not immune from the market correction. DOGE price reached $0.1498, a significant decline of 4%. Its rival SHIB was also down 3% at $0.000023.
Amid the gloom, those altcoin projects rose
Even though the overall market sentiment was negative, several cryptocurrencies managed to reverse the trend and post gains. Ethena (ENA), a token associated with the non-fungible token (NFT) authentication platform, rose 3.46% to $0.9048. Another prominent altcoin, Tron (TRX), also showed positive momentum, trading at $0.1215, up 2.42%. Lido DAO (LDO) increased by 3.6 percent and traded at $1.98. Additionally, LEO Token increased by 3 percent.
The reasons behind the current crypto market downturn are multifaceted. Concerns about rising interest rates, potential regulatory action, and ongoing geopolitical tensions are all likely contributing factors. Analysts are divided on the near-term future of the market. Some believe this could be a temporary fix and pave the way for recovery. But others express caution and foresee the possibility that prices could fall further.
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