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Last week, the entire cryptocurrency market fell, with total caps falling to their lowest levels. Bitcoin briefly fell below $64,000, and altcoins followed suit. Polkadot ($DOT) has been trending lower and is currently trading below $6.
It's been a volatile week in the cryptocurrency market. Between June 20 and June, market capitalization fell an uncomfortable 3.9% to $2.34 trillion, nearing its lowest level in five weeks. The market decline affected all of the top 10 coins, with Bitcoin falling around 4%. Prices have recovered slightly, but market sentiment remains bearish.
Popular altcoin Polkadot ($DOT) has fallen 10.07% over the past seven days and is currently trading at $5.71.
The reason for the market decline is unclear
Market analysts have speculated that the market downturn was caused by the German government's massive Bitcoin sale on June 19. However, the fallout from the German government's selloff was mitigated by MicroStrategy's large Bitcoin purchase, discrediting it as an explanation.
A more likely explanation for the decline is traders' reaction to the unfavorable macroeconomic outlook. Traders are reportedly concerned about the current US financial situation and believe the stock market may have already peaked.
No coin is immune
Bitcoin remains a common indicator of cryptocurrency market conditions, but altcoins are particularly volatile in times of financial uncertainty. Despite some fairly positive developments in the ecosystem, Polkadot’s native coin, $DOT, has recently suffered significant declines.
$DOT is down over 20% over the past month, down 10.89% over the past 7 days. As of this writing, $DOT is trading at $5.68, down 1.10% in the last 24 hours.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
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