Markets
Why is the market down today?
Total cryptocurrency market cap (TOTAL) and Bitcoin (BTC) were both victims of Mt. Gox’s $5 billion move. The resulting decline also had an impact on altcoins, with Lido DAO (LDO) sharply declining.
In today’s news:-
- Mt. Gox, one of the largest cryptocurrency exchanges in the world, went bankrupt ten years ago. Today he made a move. This was the first transaction in five years, like approximately 75,000 BTC worth $5 billion changed address.
- Kaiko Research, in a report, predicted that Grayscale Ethereum Trust (ETHE) could follow in the footsteps of its Bitcoin counterpart GBTC. The report notes that ETHE could see average daily outflows of $110 million.
Mt. Gox sends ripples through the cryptocurrency market
The total cryptocurrency market capitalization marked a red candle on the charts today as the Mt. Gox news sparked bearishness among investors. The combined value of all cryptocurrencies fell by $45 billion, but TOTAL still holds at $2.48 trillion, around the key support of $2.50 trillion.
To know more: Top 9 Altcoin Trades in 2024
Cryptocurrency market capitalization analysis. Source: TradingView
If this bullish depreciation trend intensifies, it could cause the cryptocurrency market valuation to decline further. This could send a TOTAL of $2.40 trillion.
The price of Bitcoin reacts similarly
Given that Mt. Gox’s $5 billion BTC move was the driver of today’s market, Bitcoin’s price was bound to take a hit. The crypto asset fell just over 2%, which led to BTC losing support at $68,500. This is a critical support level; cementing it as a support surface is essential to notice the recovery.
To know more: What happened at the last Bitcoin halving? Forecast for 2024
While a further decline is unexpected, the unprecedented bearish market conditions could push BTC to $66,000. However, reclaiming $68,500 as support could reignite optimism.
Lido DAO fails to breach
The price of Lido DAO increased significantly in the second half of May, but the last 24 hours have been different. As the LDO neared breaking out of the critical resistance at $2.6, the market wind shifted from bullish to bearish. As a result, Lido DAO failed the breach and slipped to $2.4.
To know more: How to stake ETH with Lido
To attempt a breach again, investors and the market must push. If this does not happen, the LDO could fall to $2.2.
Disclaimer
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