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Why Is The Crypto Market Down Today?

Why Is The Crypto Market Down Today?

BeInCryptoBeInCrypto2024/05/24 08:25
By:BeInCrypto

The total crypto market cap (TOTAL) fell below the crucial support of $2.50 trillion, along with Bitcoin, which is currently trading at $67,300. The mixed signal arose from the bearish macro and bullish crypto market developments, impacting BTC and altcoins, of which Ordinals took the biggest hit.

In the news today:-

  • Today, the US Securities and Exchange Commission (SEC) approved all eight spot Ethereum (ETH) ETF filings . However, the S-1 registration approval is still pending, so it will be a while before these ETFs can be listed.
  • The US House of Representatives voted to pass the CBDC Anti-Surveillance State Act. This amends the Federal Reserve Act of 1913 to prohibit Federal Reserve banks from offering and using CBDCs for monetary purposes.

The Total Crypto Market Cap Dips

The total crypto market cap has slipped below the $2.50 trillion support floor. This is a crucial psychological level, and losing it is not a good sign for the market. Given the rather bearish macro conditions, the chances of a decline are much higher.

Due to the higher real interest rates, even the news of the spot Ethereum ETF approval could not counter the bearishness, resulting in an overall decline in the market. This drawdown could extend, with TOTAL falling to $2.39 trillion.

However, if $2.50 is reclaimed, the winds could shift in favor of a rise, pushing TOTAL to $2.60 trillion.

Bitcoin’s Price Loses Key Support Level

Bitcoin’s price registered a red candlestick for the fourth day in a row, falling from the high of $71,800 to $67,293 at the time of writing. As BTC fell below the support of $68,500, it extended the bearishness among investors, which could potentially drag Bitcoin down to the next crucial support of $64,883.

On the other hand, despite the decline, BTC is moving within the flag pattern it has been in since early February. Reclaiming the $68,500 support could resume this bullish incline, potentially sending BTC back to $71,800.

Ordinals Loses the Uptrend

Ordinals’ price had been in an uptrend for the past ten days but fell through the line over the past 24 hours. The altcoin noted a 10% decline in this duration, resulting in ORDI changing hands at $37.4 at the moment.

As a result, the potential for breaching the critical resistance of $44 seems to have been delayed, as ORDI would need to note a 12% recovery in order to reach this price.

But if it does manage to, it will not only successfully invalidate the bearish thesis but also increase ORDI holders’ profits.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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