The global cryptocurrency ecosystem recently experienced a significant downturn after a sustained period of positive momentum throughout the preceding month. Bitcoin (BTC) surged to a historic high of $69,170 on March 5th, boasting a market capitalization exceeding $1.4 trillion. However, the leading digital asset swiftly retreated below the $60,000 threshold as market conditions began to cool. Insights from CryptoQuant’s Julio Moreno underscored Bitcoin’s overheated status as it surpassed $60,000, evidenced by a heatmap analysis. Consequently, the broader crypto market cap declined by 1.4% within a 24-hour span, dropping from $2.68 trillion to $2.58 trillion.
Conversely, daily crypto trading volumes surged by 27%, totaling $317 billion in the preceding 24 hours, as reported by CoinGecko. Santiment data highlights discussions among users on platforms like X and Reddit regarding holding onto their crypto holdings amidst the recent price downturn. Some investors view this dip as an opportune moment to purchase Bitcoin, anticipating a subsequent price surge. Santiment’s metrics indicate Bitcoin’s sentiment fluctuating between neutral and mildly bullish at the current price level.
Despite the overall market downturn, Shiba Inu (SHIB) remains in a bullish stance, per Santiment’s analysis. Notably, SHIB has experienced a remarkable 230% rally over the past week, achieving levels unseen since late 2021.