Markets
Why is the cryptocurrency market down today?
The total cryptocurrency market capitalization (TOTAL) has fallen below the crucial support of $2.50 trillion, along with Bitcoin, which is currently trading at $67,300. The mixed signal resulted from bearish and bullish macro developments in the cryptocurrency market, which impacted BTC and altcoins, of which Ordinals took the biggest hit.
In today’s news:-
- Today, the U.S. Securities and Exchange Commission (SEC) has approved all eight Ethereum (ETH) spot ETF filings.. However, S-1 registration approval is still pending, so it will take some time before these ETFs can list.
- The US House of Representatives has voted to pass the state’s CBDC anti-surveillance law. This amends the Federal Reserve Act of 1913 to prohibit Federal Reserve banks from offering and using CBDC for monetary purposes.
The total market capitalization of cryptocurrencies declines
The total cryptocurrency market capitalization fell below the $2.50 trillion support level. This is a crucial psychological level and missing it is not a good sign for the market. Given the rather bearish macroeconomic conditions, the chances of a decline are much higher.
Due to higher real interest rates, even the news of the Ethereum spot ETF approval failed to counter the bearish trend, resulting in an overall market decline. This drawdown could extend, with the TOTAL dropping to $2.39 trillion.
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Analysis of the total market capitalization of cryptocurrencies. Source: TradingView
However, if $2.50 is recovered, the wind could shift in favor of the upside, pushing TOTAL to $2.60 trillion.
Bitcoin price loses key support level
Bitcoin price registered a red candle for the fourth consecutive day, falling from the high of $71,800 to $67,293 at the time of writing. As BTC fell below the $68,500 support, bearish sentiment among investors extended, which could potentially drag Bitcoin to the next crucial support at $64,883.
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On the other hand, despite the decline, BTC is moving within the flag pattern it has been in since the beginning of February. Recovering the $68,500 support could resume this bullish trend, potentially sending BTC back to $71,800.
Ordinals lose the uptrend
The price of Ordinals has been in an uptrend for the past ten days, but has fallen above the line in the past 24 hours. The altcoin has seen a 10% decline in this duration, resulting in ORDI changing hands at $37.4 at the moment.
As a result, the potential to breach the critical resistance of $44 appears to have been delayed, as ORDI would need to post a 12% recovery to reach this price.
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But if it succeeds, it would not only successfully invalidate the bearish thesis but also increase the profits of ORDI holders.
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