Why is the cryptocurrency market falling? Almost all tokens are stuck

Most of the current cryptocurrency market seems to be stagnating and declining right now for unknown reasons. Some tokens continue to perform well in terms of trading activity. However, most of them have held steady or fallen in price over the past few weeks. Some of the biggest tokens like Bitcoin, Dogecoin, and even SHIB are not performing as well as they were in early 2024.

There is a lot of speculation about the reasons for the decline in the cryptocurrency market. There are many catalysts despite the many reasons why the market is bullish. Here are some factors that may cause the market to feel stuck.

Bitcoin ETF hype has dropped

Perhaps the most obvious reason for the decline in the cryptocurrency market is the performance of the largest cryptocurrency, Bitcoin. According to CoinMarketCap, the leading cryptocurrency has fallen by more than 6% over the past week. The market value of the asset has also declined, with trading volume increasing by more than 290% in the last few days.

Since the beginning of the year, Bitcoin’s performance has been closely linked to the Spot ETF approved in January. This combination is likely responsible for the recent economic downturn. Withdrawals from these Bitcoin products are ongoing, and as outflows occur, less investment goes into these products. So the lack of positive results around Bitcoin leads to the same sentiment towards other popular cryptocurrencies.

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The cryptocurrency market is eagerly awaiting Ethereum ETFs

The launch of Ethereum ETFs may be a catalyst for a potential market recovery, but we are still counting down the days to this. The launch of Spot Bitcoin ETFs has pushed the cryptocurrency market to new heights. Therefore, investors hope that the same will happen with Ethereum. Until that happens, however, the overall market will likely remain the same.

Growing concerns and uncertainty in the cryptocurrency market

As concerns and uncertainty grow in the broader cryptocurrency market, bulls are not focusing on any particular asset. As mentioned earlier, the leading cryptocurrency by market capitalization, Bitcoin, is in a bearish trend. XRP, SHIB and other assets are also in the red path on the charts.

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These concerns will likely be cured by two things: the end of the Ripple v. SEC lawsuit; and the emergence of Ethereum ETFs. The dream of a “crypto summer” is still possible, but its position is uncertain.