The crypto market has been experiencing a significant downturn in recent days, with its capitalization dropping to $2.19 trillion. This level was last seen in September 2024, and analysts at FxPro believe that it may be indicative of a double bottom formation.
According to Alexander Kuptsikevich, senior market analyst at FxPro, the current downturn could potentially lead to a 10% rebound in prices. However, if the market fails to recover, it may signal the end of the bear market and open up a further 25% decline to the 2023 consolidation range.
The drop in crypto prices has also been reflected in the decrease in global investment in crypto funds, which fell by $288 million last week. Additionally, large investors who bought Bitcoin in the last six months have accumulated unrealized losses of about $26 billion.