Altcoins like Solana and XRP fell 2-4% even though there are no signs of rotation.
The crypto market has dropped today, as its overall capitalization reduced by approximately 1.74% to 2.31 trillion. The decline was preceded by drop in Bitcoin price following sales by miners and market sentiment remaining in extreme fear zone. There was a decrease in altcoins prices, an indication of low capital rotation from Bitcoin and less risk-taking by investors.
Bitcoin Low Pushes Broader Crypto Market Down
According to data from CoinMarketCap, Bitcoin dominance is above 58%, confirming its role as the main driver of the wider crypto market. The negative momentum increased after an announcement by miner Bitdeer that it had sold its weekly production of about 189.9 BTC. This contributed to the circulating supply of the token.
The company showed no BTC being on its balance, except for customer deposits. This implies complete movement of mined production to market supply. In his response, the CEO of the company, Jihan Wu, said that the zero balance for Bitcoin does not imply that the company will never own BTC in future.
The Bitdeer announcement happened together with outflows from U.S. spot Bitcoin ETFs. Data provided by SoSoValue recorded negative net flows of $315.86 million this past week, which suggested a reduction of risks from institutions.
Bitdeer stock price has continued its fall today, after it recorded losses over the past two days. Per TradingView data, BTDR stock traded at $7.78 or more than 2.0% and nearly 28% in the previous day and five days.
This comes after the Bitcoin miner announced plans to raise up to $315 million and the company intends to utilize part of the net proceeds to expand its AI business. The stock price crash happened after the announcement of a $300 million convertible senior note by the miner. This move triggered stock dilution fears because holders of these notes will be able to change the debt into equity at any time the stock increases.
Fear Prevents Buying At Low Crypto Prices
The CMC Fear and Greed Index for the crypto market fell to 14, indicating extreme conditions of fear. These readings indicates that traders are not making buy moves even as token prices reduced.
Tokens of exchange ecosystems and layer-1s fell simultaneously. In the past, the index would have to pass the 25 mark to show long-term positive growth. Otherwise, market structure will likely remain in consolidation or additional downside.
Altcoins Signal Underperformance
Weak relative strength in the crypto market is also personified by the continued lag of altcoins behind Bitcoin. Solana plummeted close to $83, and XRP price declined to $1.38. The prices of other large tokens such as XRP, BNB, and Solana dropped by between 2% and 4%.
Meanwhile, Ethereum recorded higher losses than Bitcoin, which shows that investors are shifting towards lower risk assets. BTC price was at about $67,300, with Ethereum falling below $1,950 based on CoinMarketCap data. Although the price of BTC decreased, Michael Saylor, the Executive Chairman of Strategy, indicated another Bitcoin purchase for the company today.
He shared a chart of the BTC accumulation of the company with the caption “The Orange Century” which continues his 13th week preview of purchases. The teaser refers to the potential 100th BTC acquisition announcement.
