The crypto market continues the bearish trend that started over a month ago. Today, the market starts another week bearish by falling below $34,000. This has seen Bitcoin’s market capitalization shrink to $640 billion. Overall, the crypto market capitalization now stands at $1.42 trillion, from highs of $2.6 trillion on May 12th.
Market analysts believe that there is a combination of factors has played a role in the current crash. One of them is Elon Musk’s comments about the energy consumption of Bitcoin. Musk made it worse by announcing that Tesla would no longer take Bitcoin as payment.
However, Musk’s actions have simply been an intensifier. The main reason why the market has dropped so much is China’s crackdown on Bitcoin mining. The country has been on a sustained crackdown on mining operations, a factor that has affected the Bitcoin hash rate.
Despite the crash, whales and institutional investors are unfazed. According to Microstrategy CEO Michael Saylor, China’s crackdown on crypto mining was only a tragedy for the country. He added that the rest of the world stood to benefit from the move.
Saylor’s take on the market seems to be supported by crypto market data. Per data released by Santiment, crypto whales are building up their portfolios despite the crash. The research showed that Bitcoin addresses with more than 1000 Bitcoin are accumulating. The same pattern has been noted for addresses in the 10 to 1000 Bitcoin range. It points to confidence in the long-term prospects of the market.