Fears of a new Bitcoin bottom is around in the market in wake of recent crash involving the Terra ecosystem. Even as the BTC price fluctuates around the $29,000 range, the top cryptocurrency continues to dominate in terms of market share.
Sharp Fall In Bitcoin Price
BTC’s price fell sharply this year, consolidating most of the gains made in 2021. Concerns over rising inflation and interest rates have predominantly resulted in the losses.
The same factors are still in play, severely dampening the market sentiment around all the cryptocurrencies, not just Bitcoin. Besides, the altcoins suffered more losses than Bitcoin.
More recently, the meltdown involving the Terra crash led to more losses for crypto investors. The debate around the reliability of stablecoins attracted the need for more and faster regulations in the industry.
When Will BTC Bottom Out?
A cryptocurrency analyst Capo of Crypto cautioned his Twitter followers to be vary of bull traps. He said a new low was incoming.
“Almost the entire market except Bitcoin has made a new low after the bounce, showing that it was in fact a bull trap. BTC new low incoming.”
He said the price range of $21,000 to $23,000 was imminent. “Every bounce is corrective. Bears are in control,” he commented.
According to recent data, the sentiment towards cryptocurrency market is at its worst since the market crash witnessed in 2020 following the onset of Covid pandemic.
As of writing, the price of Bitcoin was trading at $28,866, down by 0.56% in 24 hours, according to CoinMarketcap. Data from last week shows BTC market cap to be around $560 billion, while the current market cap stands at $548 billion.
Despite trading below $29,000, BTC’s dominance in the market has not faded. In fact, Bitcoin’s market dominance is currently the highest in around eight months, according to CoinGecko. With a market cap dominance of around 44%, Bitcoin is strongest now since October last year.