Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin continued their cooldown today, with the latter falling below the $100,000 mark. Altcoins have not fared much better either, with Ethena (ENA) leading the cryptos that lost the most today.

In the news today:

• The SEC has approved Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton, expanding institutional access to crypto via spot-based funds. Franklin Templeton’s ETF received expedited approval due to adherence to established commodity trust standards.

• The Bavarian privacy watchdog ordered Worldcoin to delete biometric data, prompting the company to appeal the decision. Worldcoin argues the concerns are outdated, citing significant technological improvements in 2024.

The Crypto Market Fell Sharply

The total crypto market capitalization declined by $128 billion over the past 24 hours, standing at $3.28 trillion. This drop reflects a broader market correction, impacting most major assets. Despite the setback, $3.28 trillion represents a key level for the market, potentially signaling a foundation for stabilization or recovery.

This $3.28 trillion mark serves as a crucial support level for the crypto market. Holding above it would provide TOTAL the stability needed to prevent deeper declines.

Total Crypto Market Cap Analysis. Source: TradingView

However, if bearish market signals persist, a drop to $3.10 trillion or lower could occur. Conversely, maintaining support above $3.28 trillion would pave the way for a recovery toward $3.49 trillion. Such a move would invalidate the bearish outlook, boosting sentiment and driving renewed momentum across the crypto market.

Bitcoin Loses Key Support

Bitcoin’s price dropped below the $100,000 threshold, settling at $97,074 after reaching a new all-time high of $108,384 earlier this week. This decline marks a temporary setback for the crypto leader.

Despite the recent decline, Bitcoin has consistently held above the support level of $95,668 for the past three weeks. This stability signals strong buying interest at lower levels, preventing further downside.

Bitcoin Price Analysis. Source: TradingView

If bearish trends persist, Bitcoin may consolidate below $100,000, delaying its recovery. However, a sustained breakout above this level could reaffirm bullish momentum and negate the bearish outlook.

Ethena Slips on the Daily Chart

ENA’s price has experienced an 8.7% decline in the past day, positioning the altcoin just above a key support level of $0.938. This threshold has historically provided a floor for the cryptocurrency, signaling potential stability despite market volatility. 

Given current market uncertainties, ENA is expected to remain rangebound between $0.938 and $1.249. This consolidation phase reflects a cautious sentiment among traders as they await clearer signals. A sustained move within this range could pave the way for gradual recovery or further downside, depending on broader crypto trends.

ENA Price Analysis. Source: TradingView

A breakout above $1.249 could signal bullish momentum for ENA, targeting higher price levels. Conversely, losing the $0.938 support would indicate a bearish reversal, potentially leading to extended losses, sending ENA to $0.765.