Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) fell sharply today and triggered a bearish sentiment across the market. Following into BTC’s footsteps many altcoins slid on the charts, with Fantom (FTM) being the biggest loser of the day.

In the news today:

• Bitget is merging its tokens, BGB and BWB, into a unified BGB token for exchange and wallet functions. The new token will support features like Fair Launchpool, gas fees, and integration into DeFi and public blockchains.
• Strive Asset Management, founded by Vivek Ramaswamy, has applied to the SEC to launch an ETF investing in Bitcoin Bonds. The ETF will target convertible bonds from companies like MicroStrategy that fund Bitcoin purchases.

The Crypto Market Loses A Huge Chunk

The total crypto market cap has dropped by $104 billion in the past 24 hours, falling to $3.27 trillion. This decline reflects growing bearish pressure across the market, raising concerns among investors about the potential for further losses. The market’s ability to stabilize remains uncertain.

Despite the drawdown, TOTAL could recover and reclaim $3.28 trillion as support, signaling the possibility of a rebound. But if this fails and the macro-financial cues remain bearish, a drop to $3.10 trillion is on the cards.

Total Crypto Market Cap Analysis. Source: TradingView

On the other hand, if trading activity regains momentum, this bearish outlook will be invalidated. TOTAL may successfully break above the key resistance level and attempt to revisit the barrier at $3.49 trillion.

Bitcoin Is Holding Above The Crucial Support

Bitcoin’s price has dropped to $96,444, holding above the critical support at $95,668. This decline follows BTC’s inability to reclaim $100,000 as a support level. The current price action reflects heightened uncertainty in the market as investors assess Bitcoin’s potential for recovery in the coming days.

In the short term, Bitcoin is likely to consolidate above $95,668, with a significant drop appearing unlikely. The ongoing hype surrounding New Year celebrations is fueling cautious optimism, preventing bearish momentum from gaining traction. 

Bitcoin Price Analysis. Source: TradingView

A successful breach of $100,000 would mark a pivotal moment for Bitcoin, potentially driving its price toward $105,000. Such a move could signal the start of a renewed bullish trend, attracting increased investor participation and setting the stage for further gains in the new year.

Fantom Is At A Monthly Low

Fantom’s price dropped by 8% over the last 24 hours, marking it as the biggest loser of the day. This decline pushed the altcoin to a monthly low, raising concerns among investors about its ability to recover amid bearish market conditions.

FTM is currently trading at $0.88, positioned equidistantly between the support at $0.76 and the resistance at $1.03. The altcoin’s ability to maintain its current price range will depend on broader market sentiment and increased trading activity in the coming days.

FTM Price Analysis. Source: TradingView

If broader market cues turn bullish, FTM could aim for the $1.03 resistance level. Flipping this into support would signal the start of a recovery, invalidating the bearish outlook of a drop to $0.76 and restoring investor confidence.