Analysts predict a collapse of the crypto market amid US regulatory policy

After the release of weak data on employment growth in the US private sector, leading cryptocurrencies showed a decline. Thus, Bitcoin BTC $107,054.71 Bitcoin 1.39% Market capitalization $2.13 trillion VOL. 24 hours $1.71 billion dropped by 0.68% to $ 105,032, and Ethereum ETH $2,580.23 Bridged Ether (StarkGate) 1.62% Market capitalization $0.15 billion VOL. 24 hours $1.87 billion fell by 0.27% to reach $ 2,610. Dogecoin DOGE $0.17 Binance-Peg Dogecoin -0.45% Market capitalization $0.45 billion VOL. 24 hours $0.18 billion lost the most — its rate fell by 2.64% to $ 0.1882.

Ethereum tried to regain ground, rising to $ 2,670, but failed to sustain its growth. During the day, about $ 150 million of long positions and $ 64 million of short positions were liquidated. At the same time, about $ 492 million in shorts on Bitcoin remain at risk if the price exceeds $ 107,000 again.

The index of fear and greed in the crypto market has dropped from 62 to 57 points. The drop in Bitcoin’s Open Interest coincided with the price drop, which amounted to 0.47% per day. Meanwhile, most of the leading traders on Binance continue to bet on further growth of Bitcoin.

Despite the price drop, some assets still showed a noticeable increase: the DeXe token rose by 9.35% to $ 9.79, while SPX6900 and Lido DAO grew by 5.14% and 4.84%, respectively. The total capitalization of the cryptocurrency market decreased by 0.63%, remaining at $ 3.3 trillion.

Santiment analysts have noticed an increase in the number of new Bitcoin wallets, which indicates that users are becoming more active. According to crypto analyst Michael van de Poppe, the markets are preparing for a «massive breakout,» citing the weakening of the US dollar and bond yields, as well as the strengthening of the yuan.