Subsequent to a tough week on the crypto market, Bitcoin dived below $39,000, which shows that traders are actively deserting the industry or setting their funds to one side in the midst of risking risk-off tendencies, as noticed by Santiment.
On-chain metrics trackers and providers stated that, compared to the downbeat transaction sessions, the amount of trading on the day of the rebound has significantly increased, as compared to the weekend trading sessions, which usually are trailed by a deficient trading Volume.
As of now, Bitcoin, Luna, and a host of other altcoins and cryptocurrencies have bounced above Thursday dip prices.
In addition, Bitcoin still stays in a diminishment, which shows that there is no shift in global sentiment amongst investors and traders.
Following the complicated bear trend on the crypto market, different analysts have shown their concerns about the level of stability that Bitcoin possesses as it was nearly close to breaking in a heavy support line that was formed in February.
The activities of tech stocks and other risk-on assets also make a statement against the first cryptocurrency. According to Blockware analyst Will Clemente, He noticed that Bitcoin is still strongly connected with most tech companies, which indicates that the asset is likely to follow their performance on the market.
Due to the increase of risk-off tendencies on the market, digital assets are likely to, in fact, lose some portion of their capitalization, even with the tightening of monetary policy in the U.S.