Why Crypto Could Heading For A Retest Of The Summer Lows

The crypto market has seen over today’s trading session as large cryptocurrencies retrace as much as 20% during the weekend. The near term seems likely to trend to the downside, at least until the end of the week, according to a group of experts. Related Reading: Polkadot (DOT) Hits The Brakes At $7.34 After Brief Recovery At the time of writing, the crypto total market broke below the $1 trillion mark and could re-test support at $920 billion. Macro conditions seem to be pushing down risk assets, such as cryptocurrencies and equities, In a market update shared with NewsBTC, Matt Weller, Global Head of Research for FOREX.com, and City Index, the current price action across the sector has been triggered by a decrease in risk appetite from market participants. There is still much uncertainty around macro-economic factors which could be contributing to the latter. The U.S. Dollar (DXY Index) has been pushing upwards, as the market seeks shelter from high inflation and uncertainty, negatively impacting other major currencies, equities, and crypto assets. If the U.S. dollar continues its ascend, the total market cap for the nascent sector could see a 58% decline by completing a bear flag formed on its weekly chart. As analyst Caleb Franzen said, this could push the sector to its 2020 levels at around $400 billion and take down a large portion of the profits generated during the past bull run. If you watched the livestream this morn...