Today, the value dropped to $33.25K. This is its lowest point in 10 months. This dominant cryptocurrency is in a steady downtrend from March to the present. Since then, it has lost almost 30% of its value.

The Stock Market: Shadowing

On Friday, May 5th, one of Bitcoin’s largest downswings since January was witnessed. In just one day, the leading digital currency fell 10% to $39.75K and then dropped to $35.87K. It was also accompanied by the plummet of stock market indexes which fell by 10% from $39.75K to $35.87K in a matter of hours. This happened due to an historic United States FED decision to increase interest rates by 0.5%.

A severe decline in stock markets caused one of the largest cryptocurrency price drops in three month, which resulted in the overall market value for the cryptocurrency market shrinking 7.5% and reaching $1.66 trillion. The crypto market cap fell another 9.6% over the weekend and currently stands at $1.5 trillion according to CoinMarketCap.

However, Bitcoin is still the most popular cryptocurrency. With a $627.5 billion market cap, it accounts for almost one-third of the cryptocurrency market’s entire value.

Extreme Fear and Greed Index

General investor sentiment fell as Bitcoin’s price hit one of its highest lows in the last 10 months. The ‘Crypto Fear and Greed Index‘ fell to 11 points and is currently deep in ‘Extreme Fear’ territory.

Bitcoin investors have not shown such extreme fear since January. Due to market volatility, the top crypto was testing $33.5K at the moment.

Accumulation continues

At the same time, Bitcoin’s accumulation trend score remains unshaken, and has been so since January, says cryptocurrency analytics firm Glassnode. According to them, Bitcoin accumulation continues to hold steady despite BTC’s correlation to traditional stock markets and the extreme risks and uncertainties that come with it.

In related news, the percentage of Bitcoin’s circulating supply held on crypto exchanges have diminished to their lowest levels since 2018, when the market entered the first “crypto winter” following the enormous hype of the 2017 rally. This is a sign that bitcoins are less readily available.

Considering Bitcoin’s limited supply of 21 million coins, 19.035 million of which have already been mined, such scarcity on exchanges could be considered a catalyst for a potential future price rally.

Continue reading on DailyCoin