Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) have noted minimal declines over the last 24 hours. Stable market conditions are preventing excessive declines in price, however, some altcoins like Pi Network (PI) has emerged as the worst performing crypto token of the day.

In the news today:-

• GameStop announced it will invest in Bitcoin as a treasury reserve asset, following its Q4 2024 earnings report showing declining sales. Despite the report, the Bitcoin move boosted the company’s stock by 6%, with limited crypto exposure expected to improve its financial position in 2025.
• Ripple’s Chief Legal Officer announced the XRP lawsuit with the SEC is nearing its final phase, with Ripple set to receive most of a $125 million fine. Ripple will likely be able to offer XRP tokens to institutional investors, potentially affecting market liquidity and ETF approval prospects.

The Crypto Market Is Finding Its Strength

The total crypto market cap is holding steady at $2.81 trillion, with minimal losses in the last 24 hours. Crucially, the market cap is maintaining support above the $2.74 trillion level. This support is key for maintaining stability and preventing further price declines in the broader market.

If the current upward momentum persists, the total crypto market cap could move toward $2.93 trillion. Breaking through this level would bring the market closer to $3.00 trillion, potentially recovering much of the losses seen in March. This recovery would signal renewed confidence in the market.

Total Crypto Market Cap Analysis. Source: TradingView

However, if broader market conditions worsen, the total crypto market cap could fall below the $2.74 trillion support. Such a drop would likely push the market cap to $2.61 trillion, marking a significant decline. This scenario could exacerbate bearish sentiment and slow down any potential recovery.

Bitcoin Looks To Continue Its Incline

Bitcoin is down less than 1%, trading at $87,196. The cryptocurrency is working to secure $86,822 as a support floor, which is crucial for sustaining its recovery. Holding this level would allow BTC to continue moving upward and strengthen the bullish sentiment surrounding the cryptocurrency.

If bearish signals do not intensify, Bitcoin’s price is unlikely to experience significant declines. With the $86,822 support in place, BTC could potentially bounce upward and target the next resistance at $89,800. This bounce would indicate a continuation of Bitcoin’s recovery trend and provide further bullish momentum.

Bitcoin Price Analysis. Source: TradingView

However, if Bitcoin loses the $86,822 support, it could face a more significant drop. BTC may fall to $85,000 or even lower, potentially reaching $82,761. A breakdown below this level would invalidate the bullish outlook and point to further downside risk for Bitcoin.

Pi Network Falls To Crucial Support

PI has experienced a 13% drop in price over the last 24 hours, now trading at $0.82. The altcoin is inching closer to its next support at $0.76. If bearish conditions persist, PI could see further declines toward this support level, which may indicate a deeper price pullback.

After failing to hold above $0.92, PI is nearing its all-time low (ATL) of $0.60. A continued bearish trend, driven by skeptical investor sentiment or market conditions, could see the price fall to this monthly low.

PI Price Analysis. Source: TradingView

Reclaiming $0.92 as support would allow PI to bounce back, potentially reaching $1.19. Successfully holding this level would invalidate the bearish outlook and provide a recovery from recent losses.