Bitcoin dropped a further 1.0% to US$37,431 on Monday early afternoon, as the market is seeing more people HODL (hold on for dear life), while new potential crypto investors are reluctant to ‘buy the dip’ after a 50% nosedive in recent months.
Meanwhile, its largest rival Ethereum, fell 0.9% to US$2,570.
The world’s two leading cryptos continue to trade around 45% below record highs seen in November as investors shun riskier assets and instead seek safe havens from soaring inflation and fears of tightening global regulation.
“Following the recent slump in crypto markets, Bitcoin, the global benchmark of cryptocurrencies, has failed to recover ground and move above the crucial $40,000 level,” Naeem Aslam, an AvaTrade analyst, said.
Alt-coins Cardano, Solana, XRP, and Terra meanwhile tumbled 4.2%, 5.3%, 4.7%, and 7.8% respectively, while doggy meme-coins Dogecoin and Shiba Inu slipped 3.2% and 5.3%.
Some 90 of the 100 most valuable cryptos are trading in negative territory.
Down the pecking order, Polkadot, Avalanche, and Polygon all eased 6.4%.
Not all alt-coins languished, with Decentraland and Maker seen as the anomalies – gaining 1.5% and 3.2% respectively.
Some commentators, like Aslam, see brighter upcoming outlooks.
“With mainstream adoption of cryptocurrencies on the rise, by institutional investors and individuals alike, and backed by strong fundamentals, the future outlook of cryptocurrencies remains positive,” Aslam added.
“[Meanwhile,] in an unexpected turn of events, Wendy Rogers, State Senator of Arizona, is attempting to get a bill passed that would make Bitcoin a legal currency in the state.
“The likelihood of the bill being passed is extremely low, and even if it is approved, it will most likely be merely symbolic, with little impact on its practical application.
“This is because there would be no obligation for Arizonian citizens to accept it as payment, and it would also have no effect on Bitcoin’s tax status,” Aslam commented.
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