The 2023 cryptocurrency market has continued to show its basic inherent volatility with BTC or Bitcoin’s price experiencing almost 4% reduction in the month of May.
This happens to be a relatively notable dip since it is significant of this crypto giant’s very 1st monthly loss in this year.
On the other hand, ETH or Ethereum technically made their presence felt, thereby burning a solid 143 tokens just in May. While market observers and investors are grappling with these constantly shifting sands, the question here is – can Ethereum assume the place of a major market influencer?
Investors during this time keep a strict eye on the much anticipated launch of various new cryptocurrency projects such as Caged Beasts, while speculating whether it could be the right time for reinvesting in the very promising meme coin sector.
But at the same time, before you can examine all the upcoming offerings, it is vital to discuss the factors that contribute to the recent downturn of Bitcoin.
Bitcoin News: Downward Trajectory in 2023?
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Bitcoin’s First Monthly Loss in 2023: How ETH Reacts To Uncertain Markets With Caged Beasts?
- IndustryTrends
- June 5, 2023 3 mins read
- caged beats
The cryptocurrency market in 2023 continues to display its inherent volatility, with Bitcoin’s (BTC) price experiencing approximately a 4% decrease in May – a notable dip as it signifies the crypto giant’s first monthly loss for the year.
Concurrently, Ethereum (ETH) made its presence felt, burning an impressive 143K tokens in May alone. As investors and market observers grapple with these shifting sands, the question arises – could Ethereum be poised to assume the role of the prime market influencer?
In this vein, investors keep a watchful eye on the anticipated launch of new crypto projects like Caged Beasts, speculating if it could be time to reinvest in the promising sector of meme coins. However, before examining these upcoming offerings, it is prudent to delve into the factors contributing to Bitcoin’s recent downturn.
Bitcoin News: Downward Trajectory in 2023?
While navigating the recent economic landscape, all traders are finding themselves in difficult waters. This is because globally all central banks will automatically resort to hiking interest rates in order to control the escalating inflation.
In this context it needs to be noted that ten consecutive hike rates have been instituted by the Federal Reserve since the month of March 2022.
The European Central Bank is also jumping on this trend by tightening their monetary policies for countering any such surges in price. Since the Global Financial Crisis of 2008, interest rates have managed to reach unseen levels – this has also contributed to the uncertainty of investors.
In spite of these conditions, the primary Bitcoin blockchain is continuously witnessing solid network activity boosted by the rising popularity of different applications such as Ordinals which are being built on the same blockchain.
But of course, the liquidity of Bitcoin has been impacted negatively. This is probably because multiple retail traders are exiting the cryptocurrency space in the middle of declining price rates, which in turn is leading to an increased market volatility.
