Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin’s price are exhibiting a delayed reaction to Friday’s Nonfarm Payrolls (NFP) release. The impact can be noted across the market as well, with Brett falling by more than 20% within a day.

In the news today:-

• South Korea announces the launch of a “continuous monitoring system” for suspicious transactions on crypto exchanges.
• USDT issuer Tether’s CEO Paul Ardoino stated that this is the only way to “protect people privacy and ensure resilience/independence.”

The Crypto Market Slides

The total crypto lost a critical support level of $2.00 trillion as the market witnessed outflows worth almost $150 billion. This drawdown added to the ongoing decline in the crypto market, bringing the TOTAL down to $1.95 trillion.

The next critical support is at $1.88 trillion, and a decline to this level is possible, given the recent positive Nonfarm Payrolls report. In June, jobs in the US rose by 206,000, exceeding expectations of 190,000, albeit lower than May’s 218,000.

Read More: 11 Cryptos To Add To Your Portfolio Before Altcoin Season

Total Crypto Market Cap Analysis. Source: TradingView

Nevertheless, the jobs report’s impact on the crypto market will likely be negative. TOTAL would need to reclaim $2.00 trillion as support to recover from this.

Bitcoin’s Price Slips Under $55,000

Bitcoin’s price witnessed a sharp 4% drawdown in the last 24 hours, bringing the trading price to $54,300. The drop below $55,000 is concerning for investors as this is the last critical support before BTC falls to $50,900. 

This level is the target set by the double top pattern formed in March and July, which suggests another 8% drawdown is likely.

Read More: Bitcoin Halving History: Everything You Need To Know

Bitcoin Price Analysis. Source: TradingView

However, recovery is possible if the crypto asset bounces back and flips $55,000 into support again. This would be crucial in driving BTC back to $58,800.

Brett Leads The Meme Coin Decline

Brett’s price noted a 22% drawdown as meme coins followed the broader market cues to register a drop. The altcoin is now changing hands at $0.102, down from $0.135. Since the meme coin does not have a standing of its own at the moment, the crypto asset will follow Bitcoin’s lead.

This could lead to a fall below $0.100, potentially resulting in a monthly low for Brett’s price.

Read More: 7 Best Base Chain Meme Coins to Watch in July 2024

Brett Price Analysis. Source: TradingView

However, the meme coin is still above the support of $0.100, which gives the altcoin an opportunity to recover. The expectations are a climb back to $0.14, and if successful, it could invalidate the bearish thesis.