What Is Causing the Decline in the Crypto Market Today?
In the past 24 hours, both the total market cap and the price of Bitcoin have experienced a significant drop, leading to a bearish sentiment in the crypto market. While some altcoins have seen notable rallies, others, like BONK, have witnessed considerable drawdowns.
There are a few factors contributing to this decline. Firstly, Hashdex has withdrawn its application for a spot Ethereum ETF, as reported in a filing with the Securities and Exchange Commission (SEC). This decision came shortly after the SEC approved all spot ETH ETF filings, indicating a change in plans for Hashdex.
Secondly, a risk assessment report released by the US Treasury highlights the susceptibility of NFTs (non-fungible tokens) and similar assets to fraud and scams. This report may have raised concerns among investors and contributed to the overall bearish sentiment in the market.
As a result of these developments, the total market cap of all crypto assets has fallen below the $2.50 trillion mark, currently standing at $2.46 trillion. The next critical support level is at $2.39 trillion, and a dip to this point would represent a 2.5% decline. The Ichimoku Cloud indicator also indicates bearishness in the market.
Bitcoin, being the largest cryptocurrency, plays a significant role in determining market direction. Its price has lost the key support level of $68,500 and the Moving Average Convergence Divergence (MACD) indicator has turned bearish. If the bearish crossover is confirmed, Bitcoin could potentially drop to $64,883, the next crucial support level.
It’s not just Bitcoin that has been affected by the market downturn. BONK, a meme coin that reached a new all-time high this week, has also experienced a decline of nearly 15% in the last 24 hours. The price currently sits at $0.00003518, but it could find support at $0.000035000. However, if this support level is lost, BONK’s price could further decline to $0.00003000.
Overall, these factors combined have contributed to the current decline in the crypto market.