Bitcoin\'s Dip Below Key Support Level Triggers 3% Market Capitalization Drop, Analyst Points to Decreased Retail Investor Interest

The overall cryptocurrency market capitalization dropped 3% due to Bitcoin's decline below a key support level. Analyst Michaël Van De Poppe points to decreased retail investor interest as a factor in the market downturn.

The cryptocurrency market capitalization dropped 3% due to Bitcoin’s decline below a key support level.

However, some analysts believe that the market is poised for a correction, pointing to decreased retail investor interest and the poor performance of meme coins recently.

The global market cap dropped to $2.4 trillion on Thursday, March 23, as the cryptocurrency market continued to decline. Bitcoin’s price fell below a crucial support level of $63,000, leading to a decrease in overall market capitalization.

After rising to highs of nearly $63,000 last week, Bitcoin’s price has seen a downturn, trading at around $62,800 on Thursday.

However, the world's largest cryptocurrency faces resistance at the 200-day moving average, which currently stands at about $64,000.

If unable to break past this level, further declines may be seen in the coming days or weeks.

Analyst Michaël Van De Poppe highlighted shifts in investor behavior during the prolonged market downturn in his analysis.

Retail interest, as measured by YouTube engagement, has seen a significant decrease to 25-30%, compared to levels seen in 2021, when it reached highs of 70-80%.

This decline has coincided with a bearish phase, where alternative coins, like Chainlink, have seen steep drops of up to 60% against Bitcoin over the past five months.

In contrast, Bitcoin's dominance has remained a crucial factor shaping market sentiment.

Since the introduction of Bitcoin ETFs, the cryptocurrency has maintained stability in a range near its all-time highs.

However, alternative coins continue to face challenges and are struggling amidst the current market conditions.

Van De Poppe also shared his thoughts on meme coins, expressing skepticism towards tokens that are backed by celebrities.

He pointed out examples such as TrumpCoin, Daddy Tate, and Iggy Azalea's Mother Iggy, viewing them more as publicity stunts than investments with any real value.

Despite this caution, he acknowledges potential opportunities in certain meme coins, like Dogecoin (DOGE) and Pepe (PEPE), highlighting their high volatility and speculative nature.

Several meme coins have seen significant declines in the past 24 hours.

For instance, DOGE was trading at $0.1208, marking a nearly 3% decrease, while PEPE and RUNES saw sharper drops of 8% and 9.84%, respectively.

From the analysis, it seems that DOGE might be seeing a potential downtrend, having lost a crucial support level at $0.122.

On the other hand, RUNES continued its downward trend after a sharp decline of over 20% on Wednesday.

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News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-dip-key-support-level-triggers-market-capitalization-drop-analyst-decreased-retail-investor.html

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