- Crypto market sentiment hits rock bottom as legal battles and price decline instill fear.
- Market cap sees a decline as negative sentiment catches up with prices.
When news broke out about the legal battles involving Binance and Coinbase, the crypto market experienced a blend of responses. Ripple (XRP), among other crypto assets, displayed indications of separating itself from the market trend by showing resilience, while the overall market witnessed a downturn. Nevertheless, emerging reports indicated that the prevailing sentiment across the entire market has turned predominantly negative.
The crypto market suffers negative sentiments
New data from Santiment revealed that the current sentiment in the crypto market had reached its lowest point in quite some time. The combination of declining cryptocurrency prices and mounting concerns surrounding Binance and Coinbase has officially pushed trader sentiment to its most negative level since the market crash caused by COVID in March 2020.
Source: Santiment
Furthermore, Cardano (ADA) garnered the highest negative sentiment when examining the weighted sentiment chart. Following closely behind were Ethereum, Bitcoin (BTC), and Binance Coin (BNB), with their respective levels of negative sentiment.
Interestingly, Ripple (XRP) currently had the least negative sentiment as of this writing. Previously, Ripple exhibited a certain level of detachment from the general market trend, but the sentiment seems to have caught up with it.
Market cap of the crypto market declines
Looking at Coin Market Cap, it becomes evident that despite the decrease in the value of various crypto assets, the overall crypto market cap remained above the $1 trillion mark. However, upon closer examination of the chart, it becomes apparent that there has been a decline in the general market cap.
Source: CoinMarketCap
Additionally, the seven-day market cap chart illustrated a significant drop in value on June 14th. By the end of that day, the market cap decreased from approximately $1.058 trillion to around $1.023 trillion. As of this writing, it further declined to roughly $1.015 trillion.
This decline signified that the negative sentiment in the market was gradually impacting prices. Furthermore, if this negative sentiment persists, further price declines can be witnessed.
Buy the dip?
While the current price decline may appear as an opportune moment to “buy the dip,” it is essential to exercise caution. It could swiftly become risky if prices continue to plummet uncontrollably, akin to catching a falling knife.
