- The crypto market is down more than 5% over the last 24 hours.
- FUD surrounding Binance is the main contributing factor to the market cap decline.
- Santiment data shows that this uncertainty has historically been a market bottom.
The global crypto market cap is down 5.37% over the last 24 hours according to the crypto market tracking website, CoinMarketCap. There are three main driving factors that have dragged the total crypto market cap down over the last 24 hours. At press time, the crypto market cap stands at approximately $803.29 billion.
Perhaps the biggest factor impacting the global crypto market cap this past week is the FUD surrounding Binance, the largest crypto exchange in terms of daily trading volume. Many people in the crypto market have questioned a recent Proof of Reserves report that analyzed the assets held by the exchange. This has spurred some insolvency fears in the market.
The next contributing factor is the recent interest rate hike of 50 basis points. Although the latest interest rate hike comes 25 basis points lower than earlier hikes this year, Jerome Powell of the Federal Reserve hinted that hikes will continue and may eventually increase over the coming months.
Lastly, the trial of the CEO of the disgraced FTX crypto exchange is the third contributing factor to the declined crypto market cap.
A tweet made by the blockchain intelligence firm, Santiment, yesterday shared that there “is a whole lot of doom and gloom in crypto right now.” The tweet added that this uncertainty has historically been a bottom signal.
As can be seen by the chart shared by Santiment, traders are extremely bearish due to the FUD surrounding Binance, the Fed’s recent CPI announcement and the ongoing FTX bankruptcy news.
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