Since Luna fell sharply on May 11, cryptocurrency has continued to fall under the bear market trend, and the selling pressure of cryptocurrency still exists across the board. Although bitcoin tried to recover, its revenue also disappeared rapidly, falling by $1.26 trillion or 3.37% within 24 hours. Mainstream cryptocurrencies including Ethereum, Solana, Cardano, XRP and dogecoin all fell weekly along with bitcoin.
Shivam Thakral, CEO of buyucoin, said that investors are considering cashing out, while those who stay on cryptocurrency are in a "waiting and observing mode". Although bitcoin and cryptocurrency with high influence have volatility, they are famous for the strength and rebound ability of their investment members. However, other less well-known cryptocurrencies - according to business insider, more than 19000 cryptocurrencies have been severely hit.
Business insider gives the five worst performing currencies this week. Zcash, cosmos, apecoin, Elrond and avalanche fell sharply in the cryptocurrency bear market. Coinmarketcap data on May 27 showed that terraclassic USD fell by 46.50% in seven days, followed by Elrond egld, which fell by 25.17% in the same period. Avalanche ranked fourth with a weekly decline of 22.58%, and apecoin ranked sixth with a decline of 19.88%. Zcash has fallen by 18.32% in the past seven days, and cosmos, with a market value of $2.8 billion, has lost 15.64% every week.
What does all this mean except that the decline of the entire cryptocurrency sector and the bottoming rebound are far away? Paying close attention to the weekly winners and losers will help investors understand the trend and determine the coin with more upward traction. Cryptocurrencies, which are not well-known, are high-risk investments. Although they can produce huge losses or profits in a short time, they have great volatility.
The collapse of cryptocurrency and its current downward trend are not isolated. They are influenced and driven by the global and US economies, which are facing economic slowdown caused by post pandemic recovery, inflation, rising consumer spending, rising natural gas prices, Ukrainian war and supply chain problems. According to the Wall Street Journal, these factors are the reasons for the decline of the NASDAQ and the S & P 500, affecting technology stocks and creating a domino effect on cryptocurrencies.
Market confidence and investors' views on cryptocurrencies are also factors. Many investors have decided to cash in or move their digital assets to safer portfolios, at least until the storm subsides. Taylor Carmichael wrote for motley wool that even the cryptocurrency crash in 2022 seems to be only a small swing in time. Although it may reach trillions of dollars in losses. He reminded investors that there have been many crashes in the market over the past few decades, each after recovery.
Back to the hottest cryptocurrency, as of today, bitcoin and Ethereum have fallen by 36.68% and 46.43% respectively so far this year.