Crypto Analyst: Global Cap Needs >$1T to Avoid Decline

Crypto Analyst: Global Cap Needs >$1T to Avoid Decline
In recent days, the cryptocurrency market capitalization has witnessed a significant decline as investors have started to divest their holdings due to growing regulatory scrutiny, particularly from the SEC in the United States. 

Renowned crypto expert Michaël van de Poppe offered his perspective on the situation on Monday, June 12, emphasizing a crucial threshold that the global crypto market cap must surpass to prevent further declines.

In order to assess long-term trends and market sentiment, market analysts place a great deal of emphasis on monitoring the 200-week moving average (MA) and exponential moving average (EMA) levels. These metrics provide insightful information that is helpful in analyzing and predicting market behavior over long stretches of time.

As a long-term indicator that helps reduce price volatility and provides a thorough perspective on the overall trend lasting around four years, the 200-week moving average (MA) is used. The market price frequently signals a substantial change in the direction of the market when it goes above or below the 200-week MA. This incident may have an effect on investor sentiment and result in significant purchasing or selling activity.

The market capitalization of all cryptocurrencies is currently about $1.02 trillion, showing a slight recovery of 0.24% over the previous 24 hours. However, the markets fell by 7.32% throughout the course of the prior week, resulting in a loss of about $52 billion overall.

The data unmistakably shows a sharp decline in value, especially on June 10, when Robinhood announced it will remove Solana (SOL), Cardano (ADA), and Polygon (MATIC) from its online trading platform. 

The "cloud of uncertainty" around these assets, which appeared as a result of the SEC's escalated regulatory actions in the cryptocurrency industry, was cited by Robinhood as the reason for this move.

In the past seven days, the three mentioned altcoins, namely Solana (SOL), Cardano (ADA), and Polygon (MATIC), experienced significant selling pressure, resulting in notable declines. Specifically, SOL witnessed a drop of 27.8%, ADA fell by 23.6%, and MATIC plummeted by 27% during this period.

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This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.