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HomeCoinpedia NewsWhy is Crypto Market Down Today

Why is Crypto Market Down Today

Why is the Crypto Market Down Today

The post Why is Crypto Market Down Today appeared first on Coinpedia Fintech News

The cryptocurrency market is witnessing a downturn as Bitcoin struggles to hold its ground after reaching near its all-time high. The overall crypto market capitalization has fallen by around 4%, now sitting at approximately $3.54 trillion. Let’s dive into the factors driving this decline.

Trumps Accused of Pump and Dump Scheme

One key event shaking the market involves accusations against Donald Trump and his team regarding a “pump and dump” scheme. Over the weekend, Trump-backed memecoins, including the Official Trump (TRUMP) token and Melania Trump’s self-branded memecoin, launched and soared in value. 

Together, these tokens reached a combined market cap of over $15 billion. However, critics have accused the Trump family of manipulating the market for personal gain, which has created uncertainty among investors.

Profit-Taking Hits Bitcoin

Bitcoin, currently trading at $102,484, has seen a minor drop of 2%. This comes after an impressive 10% surge since in the last weeks. However, short-term holders appear to be cashing in on profits, contributing to the current price dip.

On-chain data from Santiment reveals that the 7-day Market Value to Realized Value (MVRV) ratio is nearing levels where investors typically book profits. Historically, when this indicator’s 7-day moving average (MA) reaches around 3%, a reversal tends to occur. 

Liquidations Add to the Pressure

The market has also experienced heavy liquidations. According to CoinGlass, $1.18 billion worth of positions were liquidated in the past 24 hours as Bitcoin briefly dropped below $100,000. 

Long traders were hit the hardest, with $921 million in liquidations compared to $260 million in short positions. Binance recorded the largest single liquidation order, valued at $15.24 million.

What Next For BTC?

Despite the dip, Bitcoin’s breakout above $99,800 is seen as an important step forward. Experts believe the next key level to watch is $105,700. If Bitcoin moves past this, it could lead to higher prices. 

While some profit-taking may cause a pullback into the $99,100–$100,400 range, strong buying interest at these levels could reignite momentum.Using Fibonacci levels, Bitcoin’s next major target is projected at $120,362, signaling optimism for the weeks ahead.

Why is the Crypto Market Down Today

The post Why is Crypto Market Down Today appeared first on Coinpedia Fintech News

The cryptocurrency market is witnessing a downturn as Bitcoin struggles to hold its ground after reaching near its all-time high. The overall crypto market capitalization has fallen by around 4%, now sitting at approximately $3.54 trillion. Let’s dive into the factors driving this decline.

Trumps Accused of Pump and Dump Scheme

One key event shaking the market involves accusations against Donald Trump and his team regarding a “pump and dump” scheme. Over the weekend, Trump-backed memecoins, including the Official Trump (TRUMP) token and Melania Trump’s self-branded memecoin, launched and soared in value. 

Together, these tokens reached a combined market cap of over $15 billion. However, critics have accused the Trump family of manipulating the market for personal gain, which has created uncertainty among investors.

Profit-Taking Hits Bitcoin

Bitcoin, currently trading at $102,484, has seen a minor drop of 2%. This comes after an impressive 10% surge since in the last weeks. However, short-term holders appear to be cashing in on profits, contributing to the current price dip.

On-chain data from Santiment reveals that the 7-day Market Value to Realized Value (MVRV) ratio is nearing levels where investors typically book profits. Historically, when this indicator’s 7-day moving average (MA) reaches around 3%, a reversal tends to occur. 

Liquidations Add to the Pressure

The market has also experienced heavy liquidations. According to CoinGlass, $1.18 billion worth of positions were liquidated in the past 24 hours as Bitcoin briefly dropped below $100,000. 

Long traders were hit the hardest, with $921 million in liquidations compared to $260 million in short positions. Binance recorded the largest single liquidation order, valued at $15.24 million.

What Next For BTC?

Despite the dip, Bitcoin’s breakout above $99,800 is seen as an important step forward. Experts believe the next key level to watch is $105,700. If Bitcoin moves past this, it could lead to higher prices. 

While some profit-taking may cause a pullback into the $99,100–$100,400 range, strong buying interest at these levels could reignite momentum.Using Fibonacci levels, Bitcoin’s next major target is projected at $120,362, signaling optimism for the weeks ahead.