Why Is the Crypto Market Down Today?
The total crypto market cap (TOTAL) and Bitcoin (BTC) did not change much over the last 24 hours. Altcoins, too, had a mildly bearish day, with SEI emerging as the biggest loser, falling by 9%.
In the news today:
- US Presidential Candidate Donald Trump unveiled his new crypto business venture, “World Liberty Financial.” The DeFi project will see 63% of the native token WLFI sold to the public. Of the remaining 37%, 17% will be reserved for user rewards, and the other 20% for the team.
- MicroStrategy plans to raise $700 million through a private offering of convertible senior notes, using the funds to redeem $500 million of outstanding debt and acquire additional Bitcoin. Any remaining proceeds will go toward general corporate purposes.
The total crypto market cap has remained relatively flat over the past 24 hours, neither declining nor rising significantly. The TOTAL index is currently trading below the $2 trillion barrier, which it fell through on Monday.
The upcoming decision from the Federal Open Market Committee (FOMC) regarding potential interest rate cuts is a key factor influencing the market. TOTAL may continue to hover under the $2 trillion level, possibly declining to $1.93 trillion if the news disappoints traders.
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Total Crypto Market Cap Analysis. Source: TradingView
On the other hand, a positive market response to potential rate cuts could push TOTAL back above $2 trillion. This resurgence would likely restore investor optimism, driving renewed confidence and investment across the cryptocurrency space.
Bitcoin Sees an Opportunity to Bounce BackBitcoin’s price is currently trading at $58,096, down by 1.55% in the past 24 hours. The cryptocurrency is eyeing a rebound from its next critical support level at $57,270. Investors are closely monitoring whether BTC can maintain this support, as it plays a crucial role in preventing further declines.
A lack of significant on-chain movement suggests Bitcoin may experience mild price fluctuations over the next few days. However, if the $57,270 support holds, BTC could recover and make another attempt to breach the $60,000 mark, restoring bullish sentiment in the market.
Read more: Bitcoin Halving History: Everything You Need To Know
Bitcoin Price Analysis. Source: TradingView
Conversely, a drop below the $57,270 support level could intensify the current bearish trend. This may push Bitcoin lower, potentially testing the psychological support of $55,000, invalidating the investors’ optimism in the process.
SEI Made The CutSEI took the spot as the worst-performing asset of the day, plummeting by 9.5% in the last 24 hours. Now trading at $0.270, the altcoin is approaching a critical test of its support at $0.258.
Despite the recent drop, SEI has consolidated above the $0.258 support level for the past five weeks. This stability could offer the cryptocurrency a chance to recover and regain some of its lost momentum. Continued consolidation would likely ease bearish pressures in the short term.
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SEI Price Analysis. Source: TradingViewHowever, a significant drawdown could follow if SEI breaks below the crucial support of $0.258. The altcoin might tumble to $0.226, erasing recent gains and invalidating the bullish-neutral outlook. Such a decline would likely amplify losses and challenge investor sentiment surrounding SEI.
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