Crypto Market Slumps as Risk Aversion Grips Investors.
The cryptocurrency market took a hit on Wednesday, with major tokens like Ethereum (ETH), Solana (SOL), and Cardano (ADA) experiencing significant declines. Bitcoin, the largest cryptocurrency, hovered around $86,900, failing to break through the $90,000 resistance level for the third consecutive day. The total crypto market capitalization fell 1.4% to $2.97 trillion, marking another failed attempt at a sustained rebound. $ETH $SOL
Investors are showing increased risk aversion, with significant outflows from crypto investment products last week, totaling $952 million. Bitcoin products saw $460 million in outflows, while Ethereum funds lost $555 million. However, XRP and Solana funds bucked the trend, attracting inflows of $63 million and $49 million, respectively.$ADA
The crypto market's weakness comes despite record highs in global stocks, with MSCI's All Country World Index rising for a fifth consecutive session. This divergence highlights a growing risk aversion among investors, who seem to be favoring the perceived safety of stocks over the volatility of cryptocurrencies.
Alex Kuptsikevich, chief market analyst at FxPro, notes that repeated attempts at rebounds have failed to gain traction, suggesting increased selling pressure. "The market's inability to sustain a robust recovery from recent lows indicates a stronger grip by sellers," Kuptsikevich said.
