Why is The Crypto Market Down Today?

The total crypto market cap (TOTAL) fell by $60 billion in the span of 24 hours, followed by Bitcoin noting a drop to $108,500 owing to the US CPI rising to 2.4% YoY. Among the altcoins, Pendle took the biggest hit, marking a 12% decline today.

In the news today:-

• The SEC rejected DeFi Development’s attempt to offer $1 billion in securities to buy Solana due to missing paperwork. Despite recent investments in SOL, the firm will need more liquidity to build a significant stockpile in the future.
• The US Senate passed the GENIUS Act’s cloture vote, ensuring bipartisan support for its amendments. With strong backing from figures like Senator Gillibrand, the bill is likely to pass by the end of the week, benefiting the US economy despite some disapproval of President Trump’s crypto ventures.

The Crypto Market Feels The Effect Of US CPI

The total crypto market cap fell by $60 billion over the last 24 hours as the US CPI rose to 2.4% YoY. While this was below the market’s expectations of 2.5%, it still had a negative impact on digital currencies, contributing to a decline in market confidence.

Currently, TOTAL stands at $3.36 trillion after failing to breach the $3.43 trillion resistance. If the decline continues, TOTAL could slip to $3.31 trillion. This drop highlights the sensitivity of the crypto market to inflation data, as the rise in the CPI further fueled concerns about future market conditions.

Total Crypto Market Cap Analysis. Source: TradingView

On the other hand, if broader market conditions improve, TOTAL could recover to $3.43 trillion. Successfully breaching this resistance level would push the crypto market cap to $3.49 trillion.

Bitcoin Notes A Slight Drop

Bitcoin is down today, trading at $108,518, after failing to secure $110,000 as support for the second time this week. The crypto king continues to face downward pressure, with market sentiment remaining uncertain. The lack of support at $110,000 leaves BTC vulnerable to further price fluctuations.

BTC is now eyeing a potential drop to $108,000. If the broader market conditions remain bearish, Bitcoin may struggle to hold above this level. A decline below $108,000 could lead BTC to test the next support level of $106,265, worsening the current downtrend and diminishing bullish momentum.

Bitcoin Price Analysis. Source: TradingView

The RSI indicates that Bitcoin’s bullish momentum is still intact, suggesting that there is potential for a rebound. If this momentum continues, BTC could recover to $110,000 and potentially secure it as support. This would validate the current uptrend and restore optimism among investors.

Pendle Faces Losses

Pendle is leading the altcoins in terms of losses today, falling by 12% in the last 24 hours. At the time of writing, the altcoin is trading at $3.92, holding above the crucial support of $3.90. The market is showing signs of potential volatility, with key levels under pressure.

The altcoin is on the verge of losing its support at $3.90. However, historical data suggests that it may not break this level. The 50-day and 200-day EMAs are still indicating a golden cross, which suggests a potential bounce back, with $4.21 as the next resistance target.

PENDLE Price Analysis. Source: TradingView

If Pendle loses the support of $3.90, it could fall to $3.77, extending the current drawdown. Such a decline would invalidate the current bullish outlook, suggesting that the recent losses may continue.