[Bitcoin Now] Price Plunge Causes Trading Volume to 'Plummet'... Market Cap Share Also Declines

[Asia Economy Reporter Lee Jung-yoon] As the price of the representative cryptocurrency Bitcoin plummeted, trading volume also sharply decreased.

According to cryptocurrency market tracking site CoinGecko on the 8th, the current 24-hour Bitcoin trading volume is $19,130,723,950 (approximately 24.3 trillion KRW). This is a 40.63% decrease from the previous day's $32,223,287,014 (approximately 40.9 trillion KRW). It is also the lowest level since April 25, when it recorded $16,778,683,768.

Bitcoin trading volume is showing a downward trend due to the price decline. As of 3:11 PM on the same day, the Bitcoin price aggregated by the domestic cryptocurrency exchange Upbit was 45.4 million KRW, down 2.39% from the previous day. This is the first time Bitcoin has recorded a price in the 45 million KRW range since February 24.

Bitcoin prices have been falling for three consecutive days following a 0.5 percentage point increase in the US benchmark interest rate. On the 6th (local time), the US stock market, which shows a synchronization phenomenon, especially the Nasdaq index focused on tech stocks, closed down 173.03 points (-1.40%) at 12,144.66, which is analyzed to have influenced the decline. Inflation concerns are cited as the cause of the US stock market decline. The US Department of Labor announced the April employment data, stating that the average hourly wage rose 0.31% from the previous month and 5.46% from a year ago.

Additionally, according to asset analysis site TradingView, Bitcoin dominance, which is the proportion of Bitcoin in the total cryptocurrency market capitalization, is also on a downward trend. As of 3 PM on the same day, Bitcoin dominance recorded 41.75%, down 0.39 percentage points from the previous day. When Bitcoin prices weaken and altcoins decline less or even rise, Bitcoin dominance falls.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates Upbit, recorded 38.47 on the day, indicating a 'Fear' stage. Compared to 41.04 (Neutral) the previous day and 45.72 (Neutral) on the 1st of this month, it fell by 2.57 and 7.25 respectively. Dunamu’s Digital Asset Fear & Greed Index is divided into stages of 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. The greed direction means increased interest in buying by market participants, whereas moving toward fear indicates a fear of asset decline causing market exits and a chain reaction of price drops.