The cryptocurrency market turned bearish on Wednesday, with the market capitalisation decreasing by 6.2 percent to fall below the $2 trillion mark to $1.96 trillion as of 1220 hours GMT.
The price of Bitcoin (BTC), the largest cryptocurrency, reached $44,743 after shedding 4.73 percent. With this decrease in price, the market capitalisation of the BTC has reached $840.6 billion. Likewise, ethereum (ETH) price slipped by 8.24 percent to reach $3,008. With this decrease in price, the market capitalisation of ETH has reached $352.2 billion. Following the suit, XRP shed 11.50 percent to reach $1.07. The market capitalisation of XRP stands at $107.3 billion after this decrease.
Similarly, the price of Cardano (ADA) reached $1.96 with a 6.78 percent decrease in its price. Its market capitalisation has reached $63.2 billion after this decrease.
Similarly, Dogecoin (Doge) price came down by 14.20 percent to reach $0.286. With this decrease in price, the market capitalisation of Doge has reached $37.4 billion.
According to experts, Bitcoin price is experiencing a sell-off, following its local high recorded on August 14 at $48,251. Institutional cryptocurrency investments have seen another week of consecutive outflows with a total of $22 million. According to a report from CoinShares, the low investor participation could be due to the seasonal effects witnessed in other asset classes as well. Investment giant Fidelity, on the other hand, stated that 90 percent of its biggest clients are interested in accessing the bellwether cryptocurrency and other digital assets. The asset manager will provide more institutional pathways to the new asset class.
The head of sales and marketing for Fidelity Digital Assets explained that institutional interest in Bitcoin has been accelerating. Tom Jessop, the head of the crypto arm of the firm, added that governments around the world printing money due to the COVID-19 pandemic was one of the largest motivators for investors to get into cryptocurrency. Fidelity is aiming to build the long-term financial infrastructure necessary for investors to access the digital asset market directly.
On the daily chart, the Momentum Reversal Indicator (MRI) has presented a top signal on August 13, a clear indication of a potential pullback. Now, Bitcoin price has continued to retrace as BTC has had four consecutive days of lower closes. As a result, Bitcoin price lost the 200-day Simple Moving Average (SMA) as support, which opens up the possibility of further losses.
The first line of defence for BTC is at the 20-day SMA, coinciding with the 23.6 percent Fibonacci retracement level at $43,673.