Market confidence plummets due to legal disputes and falling pricing, and falling market cap sparks worries of more downturns.
The cryptocurrency market reacted in various ways when news of Binance and Coinbase’s legal challenges became public. While the cryptocurrency market as a whole saw a decline, Ripple (XRP) and other assets showed signs of being immune to its effects. However, recent news has shown that the market as a whole has a somewhat pessimistic outlook.
According to recent statistics from Santiment, investor confidence in the cryptocurrency industry is at an all-time low. As cryptocurrency prices continue to fall and fears about Binance and Coinbase grow, investor morale has reached its lowest point since the March 2020 market meltdown brought on by Covid.
When looking at the weighted sentiment chart, Cardano (ADA) received the most negative sentiment. Ethereum, Bitcoin (BTC), and Binance Coin (BNB) all followed similarly pessimistically.
As of this writing, Ripple (XRP) has the slightest negativity of any cryptocurrency. Ripple has previously shown some disconnection from the prevailing market attitude, but this has changed.
Coin Market Cap shows that even when the value of particular cryptocurrencies dropped, the market capitalization of all cryptocurrencies stayed over $1 trillion. However, a deeper inspection of the graph reveals that total market capitalization has been falling.
The seven-day market cap chart also showed that the value of the market dropped significantly on June 14th. At the day’s conclusion, the market value had dropped from around $1.058 trillion to about $1.023 trillion.
This drop demonstrated how the market’s pessimism was affecting pricing. Moreover, if this pessimism continues, more significant price drops are possible.
