FX.co ★ Crypto market situation remains bleak

Bitcoin slid down early on Wednesday and traded at $20,170 at the time of writing. According to CoinMarketCap, over the past 24 hours, BTC reached an intraday high of $21,620 and an intraday low of $20,394.

Last weekend, bitcoin fell below $19,000 to $18,707 for the first time since November 2020. However, the cryptocurrency regained $20,000 by the beginning of the trading week.BTC's downtrend began in early June. The cryptocurrency fell by more than 30% from the $31,500 mark it held on June 7. Since the beginning of the month, BTC has nosedived by 57%. Bitcoin has lost 37% of its value since the start of the year.Furthermore, the cryptocurrency has tumbled by about 70% since it reached an all-time high of more than $69,000 in November 2021.

Altcoin market

Ethereum also declined early on Wednesday. At the moment of writing, ETH was trading at $1,104.Out of the top 10 cryptocurrencies by market cap, the best-performing cryptocurrency over the past 24 hours was Dogecoin, which advanced by 6.66%. Cardano was the worst performing coin, sliding down by 4.55%.Over the past week, Solana was the biggest winner out of the top 10 cryptocurrencies - SOL jumped by 21.51%. Ethereum suffered the biggest losses, decreasing by 7.04% over the past 7 days.According to CoinGecko, yesterday's best performing cryptocurrency out of the top 100 was Waves (+49.5%), while the worst performing currency was Celsius Network (-15.4%) The biggest gainer of the past 7 days out of the top 100 was TitanSwap, which soared by 83.1%, while DeFiChain was the biggest loser after diving by 22.4%. According to a weekly report by CoinShares, capital outflow from cryptocurrency funds reached $39 million over the past week. The total number of assets managed by such funds fell to $36 billion, down by 59% from November 2021 and reaching the lowest level since February 2021.However, despite growing pessimism in the market, crypto assets have attracted about $403 million in investments since the beginning of the year.Over the past several days, BTC miners downsized their operations to limit their losses, as energy prices soar amid the ongoing market crash. It is an important bearish factor for crypto.Major companies have fixed energy prices and can prepare for the bear market in advance by building up cash reserves. This help major market players weather downturn periods. Small-scale companies have taken the full force of the impact and are now vulnerable to takeovers.Crypto miners have been selling off their crypto reserves to help cover rising costs.

Outlooks by crypto analysts

While the situation in the digital assets market remains bleak, experts have made various outlooks on its short-term future. Mike Novogratz, the CEO of Galaxy Digital, expects BTC to rally once the Federal Reserve stops its monetary tightening cycle.Earlier, CEO of software firm XOR Strategy Aurelien Ohayon stated bitcoin has bottomed out this weekend and could rally afterwards. Bitcoin could reach $30,000 by the end of June, Ohayon predicted.However, not all crypto experts are bullish on BTC. Jeff Gundlach, the CEO of DoubleLine, said BTC could tumble to $10,000 due to the recent failures in the crypto market which undermined the confidence of investors. Gundlach pointed to last month's collapse of TerraUSD (UST) and the Luna token, which wiped out billions of dollars from the crypto market in a span of several weeks.Earlier, Scott Minerd, Guggenheim Partners' CIO, called most cryptocurrencies "junk" that would be knocked out of the market by the crypto winter. However, he expected Bitcoin and Ethereum to survive.