Why is The Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) noted considerable losses, with the latter somehow still holding above $115,000. Among the altcoins, Pump.fun (PUMP) emerged as the worst-performing crypto token, falling by over 15% in the span of 24 hours.

In the news today:-

• Japanese construction firm LibWork Co. has approved the purchase of ¥500 million ($3.4 million) in Bitcoin as a treasury asset. This move marks a significant step in Asia’s corporate adoption of Bitcoin, with the company planning to buy gradually over the next few months as a hedge against inflation.
• The US SEC has delayed decisions on three major crypto ETFs, pushing the review deadlines to October. The extensions, affecting ETFs from NYSE Arca, 21Shares, and Bitwise, are part of the SEC’s ongoing pattern of delaying ETF rulings throughout the summer.

The Crypto Market Dips

The total crypto market cap has dropped by $75 billion, now standing at $3.86 trillion. This decline reflects increasing market uncertainty, with investors cautious amid current conditions. 

If the bearish trend persists, the total market capitalization may slide further to the $3.81 trillion support level. Should the decline extend, it could test even lower levels near $3.73 trillion, signaling a more pronounced downturn.

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Total Crypto Market Cap Analysis. Source: TradingView

In contrast, a shift in market sentiment could enable the total crypto market cap to regain $3.89 trillion in support. If buying pressure increases, pushing past $3.94 trillion, the market could accelerate its growth toward $4.01 trillion.

Bitcoin Remains Afloat

Bitcoin’s price remained relatively stable, recovering from a brief dip below the $115,000 support level. Currently trading at $115,902, Bitcoin shows resilience despite market fluctuations.

If the market continues its bearish trend, Bitcoin’s price may drop below the $115,000 support. In such a scenario, the cryptocurrency could slide toward the $112,526 support level. This would signal a further decline, potentially leading to more selling pressure.

Bitcoin Price Analysis. Source: TradingView

However, if market conditions improve, Bitcoin could regain the $117,261 support level. A successful rebound would set the stage for a potential rise towards $120,000. This scenario would restore investor confidence, suggesting a possible reversal.

Pump.fun Takes A Hit

PUMP price fell by 15% in the last 24 hours, currently trading at $0.003074. The coin is holding just above the $0.002921 support level, but failure to maintain this price could trigger further declines. If the support is lost, PUMP could drop to $0.002428, increasing bearish sentiment.

The Relative Strength Index (RSI) sits below the neutral mark at 50.0, indicating strengthening bearish momentum for PUMP. This technical signal suggests that sellers are gaining control, and the price may continue to decline.

PUMP Price Analysis. Source: TradingView

If PUMP bounces off the $0.002921 support, it may test the $0.003409 resistance. A successful break above this level and flipping it into support would shift the momentum to bullish, potentially leading to higher gains. This price action would invalidate the current bearish thesis, signaling a reversal.