Why Is The Crypto Market Down Today?

The total crypto market cap (TOTAL) witnessed a slight decline today, led by Bitcoin (BTC), as it stood below $108,000. Altcoins, on the other hand, showcased a different story, with Ethena (ENA) leading the gains with a 16% rise in 24 hours.

In the news today:-

• US President Donald Trump hosted top crypto leaders, including executives from Coinbase, Ripple, and Tether, at a White House fundraiser. The event revealed plans for a privately funded ballroom expansion, with guests encouraged to contribute to the project.
• Tempo, a Stripe-backed blockchain payment firm, raised $500 million in a new funding round supported by major TradFi players. The company also hired a veteran developer, signaling plans to complement — not compete with — Ethereum’s existing infrastructure as it expands its stablecoin ecosystem.

The Crypto Market Needs To Find Its Way

The total crypto market cap dropped by $27 billion in the past 24 hours, now sitting at $3.60 trillion. Despite the decline, it remains above the crucial $3.58 trillion support, a level that has previously prevented deeper corrections during volatile phases in the digital asset market.

The lack of bullish momentum across the macro financial market continues to pressure TOTAL. If broader economic uncertainty and investor caution persist, the crypto market could lose its footing, triggering a decline toward $3.49 trillion. 

Total Crypto Market Cap Analysis. Source: TradingView

However, a potential rebound from current levels could reverse losses. If TOTAL manages to reclaim $3.67 trillion as a support base, it would indicate renewed optimism. Sustained momentum from this point might push the crypto market cap toward $3.73 trillion.

Bitcoin Continues Its Decline

Bitcoin continues to lead the market’s decline after failing to establish a stable support level during the recent sell-off. The crypto king is currently trading at $107,065, reflecting the broader market weakness.

The bearish sentiment intensified as Bitcoin slipped through the $108,000 level, confirming strong downside pressure. The Relative Strength Index (RSI) indicates growing bearish momentum, suggesting that further losses are possible. If this trend continues, Bitcoin’s price could fall through $105,000, with an extended drop potentially sending it toward $101,477.

Bitcoin Price Analysis. Source: TradingView

However, if investors step in to defend key support levels, Bitcoin could rebound from current prices. A bounce back above $108,000 would indicate renewed buyer confidence, enabling BTC to push past $110,000. Such a move would invalidate the bearish thesis and hint at a potential short-term recovery.

Ethena Notes A Rise

ENA emerged as the top-performing token among altcoins as it diverged from Bitcoin’s broader market trajectory. The cryptocurrency surged 16% in the past 24 hours, lifting its price to $0.465. This upward momentum positions ENA as a standout performer.

Currently, ENA is eyeing a potential breakout above the $0.466 resistance level. Successfully breaching this threshold could push the altcoin toward $0.519. A move past that point would be crucial for ENA, as it would mark a recovery from October’s decline.

ENA Price Analysis. Source: TradingView

However, risks remain as the Parabolic SAR indicator stands above the candlesticks, signaling possible downward pressure. If bearish momentum strengthens, ENA’s price could slip below $0.436, extending losses toward $0.389. Such a drop would invalidate the bullish thesis.