The total crypto market capitalization hit an eight-month low at $2.93 trillion, erasing all gains for the year. Analysts predict a bearish short-term outlook, with a 33% decline from the all-time high in October and a 14% drop since the year began. The market cap is now in the middle of its range.

Bank of Japan raised rates to 0.75%, causing concern for crypto. Analysts expect more short-term pain until a decision is made on interest rates. Bitcoin rose by 2.3% despite the rate hike. Analyst Michaël van de Poppe predicts a possible 10-20% drop in altcoins.

The recent market pullback presents accumulation opportunities for strong projects amidst macroeconomic pressures. Director Nick Ruck sees potential in fundamentally strong projects, attracting institutional capital as the sector matures.

Crypto sentiment hit fear levels after a minor pump and dump. Social media commentary turned bearish after Bitcoin’s quick bounce to $90.2K, then retracing. Santiment reported a bearish sentiment could signal a buying opportunity, with the Fear & Greed Index at “extreme fear” since November.

Read more at Cointelegraph: Crypto Market Cap Hits 8 Month Low Amid Bearish Sentiment