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Crypto Market Faces Strong Headwinds as Bitcoin Falls Below $60,000
Crypto Market Faces Strong Headwinds as Bitcoin Falls Below $60,000
The cryptocurrency market is going through a difficult day marked by continued sales. The total market capitalization of cryptocurrencies has decreased by 5.94% in the last 24 hours and currently stands at $2.21 trillion. according to to CoinMarketCap data. Additionally, the Crypto Fear and Greed Index moved from greedy territory to neutral territory for the first time since January 2024.
Tuesday’s bearish trends are evident across the board, with every coin in the top 100 showing negative performance over the past 24 hours. Cosmos (ATOM) is the best performing token among the top 100, gaining 1.98%. This is followed by Tron (TRX)which increased by 0.76%. Unus Sed Lion (LEO) rounds the biggest gainers in the top 100 and is up 0.23%. Most of the top 100 cryptocurrencies by market capitalization are currently posting losses, with Batteries (STX) being the worst performer, down 16.88% in the last 24 hours.
Bitcoin (BTC), the leading cryptocurrency, is also facing downward pressure. The coin is currently trading at around $59,897, reflecting a 6.11% loss over the past 24 hours and a 10% decline over the past 7 days. Data from CoinGlass reveals that in the last 24 hours, over $261 million in long positions across all cryptocurrencies were liquidated. When short positions are also considered, the total liquidations amount to over $324 million.
Crypto market performance is closely linked to global trends, as most international markets are also experiencing declines today. Several factors contribute to this, including concerns about the U.S. Federal Reserve’s upcoming interest rate decision, uncertainty surrounding corporate earnings, and anticipation of significant macroeconomic events.
Investors are closely watching the Federal Reserve’s stance on interest rates, with the central bank currently in the middle of a two-day monetary policy meeting. The decision and subsequent press conference are scheduled for tomorrow.
Looking ahead, updated inflation metrics and the release of the next US jobs report will play an important role in influencing market sentiment. Additionally, nearly 200 S&P 500 companies are expected to report financial results this week. Notably, April was the only bearish month for the S&P 500 since October 2023.