- The digital currency market is experiencing volatility, with a declining market capitalization.
- The combined cryptocurrency market capitalization is down by 1.58% to $1.01 trillion.
- Bitcoin (BTC) is leading the losses.
- Morgan Stanley analyst Sheena Shah suggests that the crypto market is impacted by the Federal Reserve’s quantitative tightening expectations.
- The stablecoin market capitalization has stopped falling, indicating a pause in institutional crypto deleveraging.
- Stablecoin availability is a sign of liquidity and demand for crypto leverage.
- In June, Tether (USDT), the largest stablecoin, saw its market capitalization fall 20% in about a month.
- The price of Bitcoin weakened during Asian trading hours in June, possibly due to rising U.S. treasury yields.
- U.S. central bank monetary policy tightening expectations have been a driver of the crypto bear market this year.
- The digital currency market is expected to react in the coming months as the U.S. and global economies stabilize.
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