The global crypto market lost $200 billion overnight leading into Tuesday morning, adding to $300 billion losses for the week. Momentum pushed the global market cap down since Bitcoin (BTC) hit a recent peak in April, followed by an altcoin peak in early May. Following $1.1 trillion losses since then, the previous quarter’s growth has been completely eradicated across the breadth of the crypto space.
The recent slump also coincides with a marked decline in the number of transactions flowing through the Bitcoin blockchain. On May 30, the number of daily Bitcoin transactions dipped as low as 175,000 — a near three-year low that stretches back to September 2018, according to data from Bitinfocharts.
The number of Bitcoin transactions hit 392,000 in January 2021, and remained fairly stable up until April 15 — two days after the coin price peaked. Since then, both have been in decline, with transactions dropping by more than 50% throughout May.
The crypto markets are against dropping, with Bitcoin (BTC) crashing below $33,000 for the first time since May 23 as Ether (ETH) similarly broke below support at $2,500.
The downward momentum comes as bearish indicators continue to stack up for Bitcoin, with popular analyst William Clemente III identifying that miners sold more than 5,000 BTC over the past week — worth roughly $164 million at current prices.
Miners have sold over 5,000 BTC in the last week pic.twitter.com/5pEvLgIls2 June 7, 2021
Crypto author Timothy Peterson also highlighted that BTC’s price has remained below its 200-day simple moving average (SMA) for 17 days consecutively.
”This metric has *always* marked the end of a bull run and the start of a bear market,” he asserted.
#Bitcoin price has dropped below 200-SMA for 17 consecutive days and counting. This metic has *always* marked the end of a bull run and the start of a bear market. pic.twitter.com/6dpiFbUI7A June 7, 2021
The latest report from analytics firm CoinShares shows that outflows from institutional BTC investment products continue to surge.
According to CoinShares’ June 7 Digital Asset Fund Flows Weekly report, institutional investors are continuing to reduce Bitcoin exposure, with BTC investment products seeing a record outflow of $141 million this past week.
The data follows heavy institutional selling amid May’s dramatic crypto market meltdown, with institutions having withdrawn nearly $100 million from crypto products between May 10 and May 16, before outflows briefly slowed towards the end of last month.
This Daily Dose was brought to you by Cointelegraph.