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Market data continues to indicate further fall of BTC

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While confidence among traders has proven to be steadfast, there are some key metrics that suggest Bitcoin may continue to drop in value further. 

The market cap for the crypto market has been fluctuating around $840 billion and $980 billion range for the past month. With movements relatively tight, extreme uncertainties in the market have catalyzed a number of outflows and controversy surrounding the Three Arrows Capital. 

In the days between July 4th and July 11th, BTC has gained 1.8% of it svalue while ETH has remained flat. The market in total is down 50% in a three month period, meaning that traders are giving higher odds of the descending triangle below the $840 billion support line. 

Regulation uncertainties have continued to drive investor sentiment down after the release of the ECB report which concluded that lack of regulation has aided in the downfall of algorithmic stablecoins. The resulting report led the ECB to recommend supervisory measures to mitigate the impact of declining stablecoins in European financial systems. 

July 5th, the deputy governor of the Bank of England, Jon Cunlifffe, put in his recommendation for regulations that will tackle the risks of cryptocurrencies. 

Bearish sentiment from June faded according to the Fear and Greed Index which reached a record low on June 19th, of 6/100. July 11th saw a major improvement in this index with a result of 22/100 marking an increased confidence in the bottom of the market cycle.

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