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Coinfomania

06/24/2024

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Why is Bitcoin and the Crypto Market Down Today?

The global crypto market begins the week in a significant downtrend. According to data from CoinMarketCap, the total cryptocurrency market value has declined by 2.76% to $2.29 trillion in the last 24 hours....

Why is Bitcoin and the Crypto Market Down Today?

The global crypto market begins the week in a significant downtrend. According to data from CoinMarketCap, the total cryptocurrency market value has declined by 2.76% to $2.29 trillion in the last 24 hours.

Noticeably, the general sentiment of investors surrounding the market as measured by the crypto fear and greed index, has taken a hit, dropping from 55 points (greed) yesterday to 51 (neutral) today. This means that investors’ confidence in the market is shaky as they experience mixed sentiment per Alternative data. Consequently, about $160 billion was lost in net wealth in the last seven days.

The total trading volume, however, has surged by 73.94% to $54.35 billion in the last 24 hours, with the volume of all stable coins representing about 91.14% of the total crypto market volume.

Bitcoin Leads Global Crypto Market in Downturn

In the week starting June 24, Bitcoin, the largest cryptocurrency by trade volume, has experienced a bearish movement after its price dropped below the $62k mark. According to data from CoinMarketCap, BTC now trades at $61,408, signifying a 4.62% decline over the last day. Interestingly, the trading volume recorded over the last day has skyrocketed by 191% to $23.2 billion.

Previously, Coinfomania reported that several expert crypto analysts had predicted that the price of Bitcoin might drop to $60,000, with the statements backed by a noticeable forming pattern on the coin price chart. With this latest slip, it looks like the prediction will be happening sooner rather than later.

Source: CoinMarketCap

Also, the altcoin market has followed this decline. Ethereum, the second-largest cryptocurrency by market cap has dropped by 5.44% in the last 24 hours, to trade at $3,308. In terms of trading volume, ETH has witnessed a 138% increase within the recorded time.

Similarly, other top altcoins like Binance Coin (BNB), Solana (SOL), and Ripple (XRP), have seen drops between 2.7% to 6% over the last day, as a result, they are now changing hands at $566.66, $126.21, and $0.474 respectively. Toncoin (TON), and Cardano (ADA) have declined by 5.82% and 3.01% in the last 24 hours.

In the memecoin market, the first and second largest tokens Dogecoin (DOGE), and Shiba Inu (SHIB) have slipped by 6.30% and 6.86% in the last 24 hours, to trade at $0.1174, and $0.00001687 respectively. With the overview of the crypto market looking like a bloodbath, investors are wondering what has caused this outcome. Let us take a look.

According to observations, several factors have influenced the general price drop in the crypto market. Some of them include;

Decline in whale transactions

A significant decline in large transactions has been observed recently. In the last two days, the number of whale transactions has dropped by a notable 42%, from 17,091 to 9,923. The reduction in activity among huge investors has sent a bearish wave across the market.

Spot ETFs Outflows

Last week, mouthwatering withdrawals were observed from these investment products. As a result, it has contributed to the overall bearish sentiment in the market.

Macroeconomic Events

Some macroeconomic events like ISM manufacturing data, FOMC meeting release,  jobs, and unemployment rate data, and others are due in early July. As investors continue to wait for these data, the market is experiencing a sharp correction ahead of the dates.

Large Withdrawals from Derivative Exchanges

A “risk-off” strategy has been adopted by certain traders, who move assets away from derivative exchanges to lower their exposure. The Interexchange-Flow-Pulse (IFP) indicator, which monitors the flow of Bitcoin between derivative and spot exchanges, has turned red, indicating a loss of trust in the market.

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Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


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