Trader sentiment falls to a three-year low

Amidst the United States’ crackdown on cryptocurrencies, bitcoin, and other cryptos have experienced a significant price decline.

A report from Santiment, an analytics company, stated that investor sentiment is officially at its most pessimistic level since covid-19 crashed markets in March 2020.

This comes as the market downturn has resulted in a nearly $40 billion decrease in overall market capitalization, representing a 3.6% decline to $1.06 trillion. Altcoins, including ethereum, have experienced more significant losses compared to bitcoin.

How are markets doing today?

Crypto markets are in for a dip as the global market cap dropped by 4% within a day of trading as of this publication. Bitcoin dipped today as the asset trades at $24.8 amid a 4% drop within 24 hours of trading.

Bitcoin’s volatility levels are also increasing as the Bollinger bands, used in estimating volatility levels, diverge away from each other, indicating rising volatility. The relative strength indicator also moves below its average line, signaling a bearish trend on bitcoin.

Most assets are also having turbulent sessions today as most of them lose valuation as of today’s session.