Bitcoin (BTC) ended May at above $32,000, it briefly fell again to $29500 on June 2 and then rose back above $30,000.
CoinGecko data shows that the global market capitalization of cryptocurrencies fell again to $1.3 trillion, coloring many altcoins red.
CEO and co-founder of cryptocurrency exchange Vauld Darshan Bathija believes that the cryptocurrency market is currently moving in a similar pattern to stock markets, and in fact, it is still in a bullish trend.
As U.S. stocks have experienced another day of correction, cryptocurrency markets have followed the same path. With a high correlation between BTC and the S&P 500 Index, traders will remain optimistic about cryptocurrencies.
Edul Patel, CEO and co-founder of crypto investment platform Mudrex, noted that prices are falling because cryptocurrency buyers are now risk averse:
BTC recorded a brief bounce last week, but within 24 hours it was back to the $29,000 mark. This indicates a low risk appetite on the part of buyers.
WazirX Trade Desk analysts believe that “Bitcoin’s daily trend continues to move within a descending triangle pattern. The next resistance for BTC is expected to be at $40,000, while support is expected to be at $26,800. Bitcoin must overcome the $40,000 level to begin a significant upward rally.”