Cryptocurrency Market Declines Amidst Bitcoin Dominance and Fear

The cryptocurrency market has been experiencing a decline in recent days, with the overall crypto market cap dropping by approximately 1.74% to $2.31 trillion.

This downturn is attributed to various factors, including Bitcoin's dominance, mining activities, institutional risk aversion, and widespread fear among investors.

Bitcoin's dominance has been a major contributor to the decline, with its price falling due to increased supply in the market. The recent announcement by Bitdeer, a miner, that it can sell its weekly output of about 189.9 BTC has contributed to this supply increase.

The selling pressure on Bitcoin has also been fueled by institutional risk aversion, with U.S.-based spot Bitcoin ETFs withdrawing 315.86 million in the past week.

Additionally, widespread fear among investors is another significant factor contributing to the decline. The CMC Fear and Greed Index has dropped to 9, indicating that traders are reluctant to purchase even at lower prices, resulting in long-term falls.

The altcoin market is also experiencing a downturn, with many large tokens, such as Solana and XRP, falling by between 2 and 4%.

Experts warn that the crypto market's volatility could present opportunities amid the current fear-driven landscape, but investors should monitor key indicators closely to navigate these risks.