At press time on Monday evening, bothBitcoin andEthereum lost ground as both coins failed to breach their key levels due to diminishing returns, with the global market cap falling 3% to $1.25 trillion.
See also: Best USDC Interest Rates.
What Happened: While U.S. stocks rallied on Monday, the momentum fizzled out after the closing bell. S&P 500 and Nasdaq futures were down 0.3% and 0.7% at press time.
Edward Moya, a senior market analyst at OANDA, said thatBitcoin failed to attract investors and will remain a choppy trade throughout the summer.
The price of digital currency remains weak despite a broad risk rally on Wall Street. Moya said that most of the crypto traders are hesitant to buy the dip, which means that the bottom has not been made.
Moya said the apex coin could rebound once Wall Street believes the Federal Reserve will stop hiking rates near the 3% level.
Santiment said that the investor sentiment on the virtual currency has hit a rock bottom and is at its lowest since Black Thursday in March 2020.
The market intelligence platform said that weak hands may continue to present opportunities for the patient.
Glassnode noted that the loss of some sheen onBitcoin andEthereum has taken place in the backdrop of diminishing returns.
The apex coin's compound annual growth rate has dropped from 200% in 2015 to less than 50%, and it has lost 1% of its market value each day over the last month, according to Glassnode.
The four-year CAGR for ether has dropped to just 28% per year from 100% per year, while the CAGR for the last 12 months has fallen to 36% per year.
The most important support level for Bitcoin is between $29,330 and $30,200, where 1.23 million addresses hold more than 850,000BTC, according to chartist Ali Martinez.
There needs to be a hold above the demand wall for a chance of rebounding. Failing to do so can lead to the continuation of the downtrend, said Martinez.