Just a day earlier, the trading prices for the cryptocurrencies were moving higher. It seemed that the cryptocurrencies were moving in the upward direction and the bulls had the trend in their hands.

Cryptocurrency investors were glad that they were witnessing a strong trend in the crypto market following the 2022 massacre.

Cryptocurrencies are Moving Downward

As of now, the cryptocurrency market is facing a downtrend and the situation seems to have gotten out of the control of the bulls.

Most of the cryptocurrencies are now facing a downtrend and the situation seems to have worsened for the bulls.

The latest market data shows that the trading price of Bitcoin has recorded a 1.4% dip in the past 24-hours. Although the bulls were very strong at the beginning of the month, they seem to have lost their resolve.

This is the reason why the trading price of Bitcoin is now moving in a negative direction. At the time of writing, the trading price of Bitcoin is below the $23,500 mark.

Then comes Ethereum (ETH), which is also bad news for investors. The investors of ETH have seen the asset’s trading price dive by 0.6%.

Despite attempting for so long, the bulls were not able to sustain the selling pressure of the bears. This has resulted in pulling the trading price of the asset below the $1,650 mark.

Future of Bitcoin

Due to the recent downtrend, many investors have lost their confidence in Bitcoin. They are not sure whether the trading price of Bitcoin would continue moving higher or not.

Compared to the fourth quarter of 2022, the trading price of Bitcoin has recovered significantly in the year 2023.

From the start of 2023, Bitcoin has continued experiencing an uptrend. The token successfully managed to get past the $24k level and for a couple of instances, its price moved past the $25k barrier.

Each time the bulls attempted the push, the price of Bitcoin was pulled down by the bears. The bears have continued selling the asset, which has kept it stuck close to the $23,500 level.

High Inflation from the US is Pulling Bitcoin

One of the major causes behind the decline in Bitcoin’s trading price is the current economic situation. The inflation rates have continued rising and that has resulted in a major dent in the overall valuation of the crypto market.

This is because the value of the dollar is constantly rising in the forex market. As the dollar price surges, the competitors lose their worth against the asset.

Therefore, the trading price of Bitcoin and the altcoins keep on declining whenever such an event occurs. This is the reason why the valuation of the cryptocurrency market is declining.

Even the largest crypto, Bitcoin is not able to witness any strong movement due to the recent rise in the dollar price.

Europe is also Following the Same Trend

The US economy and the dollar are not the only reason Bitcoin and altcoins are facing a downtrend. It is the surge in the US inflation rates that have caused the trading price of the dollar to move higher.

The economic situation in Europe has also resulted in pulling down the entire cryptocurrency industry.

In Europe, it is Germany that has recently shared hot inflation data. As a result, the trading price of the euro has surged in the forex market.

This is yet another reason why investors have lost confidence in cryptocurrencies. They are investing heavily in the euro instead of investing in cryptocurrencies.

Apart from BTC and ETH, other major cryptocurrencies that have experienced a downtrend include Solana (SOL) and Polygon (MATIC).

The crypto market report shows that the trading price of Solana has recorded a 3% decline. On the other hand, the trading price of MATIC has recorded a 2% decline.

Due to the recent downtrends, the overall crypto market capitalization has fallen by 2%.