The total crypto market cap (TOTAL) and Bitcoin are observing the impact of “sell in May and go away”. With consistent declines noted throughout June, the bearishness is surging, impacting successfully launched altcoins like LayerZero (ZRO) as well.
In the news today:-
- CoinShares, a crypto-focused investment firm, sold its FTX claim for £31.32 million. The company observed a 116% recovery rate on a £26.6 million claim.
- Turkey’s biggest crypto exchange, BtcTurk, announced that it had been hacked over the weekend. While the exchange claimed only some of the balance on the hot wallets of ten crypto assets was affected, users have been claiming that almost €51 million had been stolen.
The Total Market Cap Continues to Fall
The total crypto market cap is currently at $2.21 trillion after the market observed outflows worth close to $70 million in the last 24 hour. The stability expected around the $2.29 trillion mark was not sustained, and the chances of recovery are bleak.
TOTAL is reacting to the lower summer liquidity arising from the popular notion of “sell in May and go away”. The crypto market could see some cooldown and slow movement until September or October.
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If any recovery was to take place, it would require TOTAL to bounce back from $2.20 trillion. The same can only be confirmed once the $2.29 trillion resistance is flipped into support again.
Bitcoin’s Price Slips to $62,000
Bitcoin’s price fell through the support at $63,000, bringing BTC to change hands at $62,282 at the time of writing. The crypto asset was expected to note a drawdown, given it was moving in a double-top pattern.
The target for BTC was $63,068, but Bitcoin’s price fell much further than the anticipated decline of 6.5%.
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BTC could return and attempt to reclaim the lost profits provided it can secure $63,00 as support again. This would enable a rise to $65,000, invalidating further bearishness owing to rising liquidity.
LayerZero Caught in the Crossfire
Despite witnessing a successful launch last week, LayerZero notes a 14% decline over the last 24 hours. The altcoin, spread across the biggest networks in the crypto space, including Ethereum, Polygon, and Avalanche, is likely to witness a correction.
This could be due to the altcoin’s cooling demand or the broader market cues impacting the asset. Regardless, ZRO will likely fall to $2.5, sending the altcoin to $2.0 or lower.
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However, a bounce from $2.5 will provide the necessary boost to catalyze a recovery and send ZRO back above $3.0.
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