The total cryptocurrency market has experienced a decline of more than 7% over the past week and over 3% in the last month. Altcoins, which are typically more volatile than Bitcoin, have seen a worse decline, losing over 4% of their market value in the last 30 days.
Bitcoin (BTC) has shed approximately 3% in the same period, and seems to be locked in a sideways pattern. This comes after the Bitcoin halving, which resulted in a 50% reduction in block rewards and a corresponding 55% drop in miner revenues.
Stablecoin issuance is usually a sign of an increase in capital and liquidity influx in the cryptocurrency market, but analysts have noted low stablecoin issuance levels lately. This suggests that new capital flowing into digital assets has somewhat stalled with prices.
In addition, there have been recent outflows from funds, adding pressure to Bitcoin prices and the broader digital asset market. Despite the current lull in the market, analysts believe that a reversal is not out of reach in the short term.
A report stated that historical trends indicate that periods of sustained low miner revenues combined with a high hash rate can suggest a potential market bottom.
