Why is The Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) are both taking minor hits, falling slightly on the daily chart. This decline is due to the August 7 tariff announcement from the US President, highlighting the upcoming tariffs on other countries. Fartcoin (FARTCOIN) took the biggest hit among altcoins as it fell by nearly 11% today. 

In the news today:-

• Changpeng Zhao, former CEO of Binance, requested a Delaware court dismiss FTX’s lawsuit, citing a lack of jurisdiction since he’s not a US or Delaware resident. FTX seeks to recover $1.76 billion from Binance, involving ambiguous transfers between the two firms.
• The SEC clarified how liquid staking tokens (LSTs) fit within securities laws, easing some existing rules while remaining cautious. While the statement is non-binding, it offers valuable clarity for crypto firms, although the SEC’s stance may change in the future.

The Crypto Market Slips

The total crypto market cap has fallen by $83 billion, currently standing at $3.65 trillion. This drop is driven by rising uncertainty, particularly due to the upcoming tariff announcement from former President Trump.

TOTAL is holding above the $3.61 trillion support level after failing to break through the $3.73 trillion resistance. The market sentiment remains cautious, with traders monitoring the broader economic situation.

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Total Crypto Market Cap Analysis. Source: TradingView

If the market fails to maintain the $3.61 trillion support, a decline to $3.49 trillion is likely. On the other hand, if bullish momentum returns, a bounce could push the market cap back to $3.73 trillion. Breaking this resistance would open the path for further growth towards $3.81 trillion.

Bitcoin Continues To Hover Under Resistance

Bitcoin’s price is currently at $113,476, failing to surpass $115,000 in the last 24 hours. The crypto king is facing a downtrend, reflected by the Parabolic SAR indicator above the candlesticks. Market sentiment remains cautious, with investors awaiting a clearer direction in the coming days.

If the selling continues, Bitcoin’s price is likely to slide towards the $111,187 support level. This would mark a monthly low, further confirming the bearish trend. 

Bitcoin Price Analysis. Source: TradingView

However, if demand surges, Bitcoin’s price could reclaim the $115,000 level. Successfully surpassing this resistance would bring BTC closer to $117,261, invalidating the bearish outlook. A sustained push above $115,000 would signal renewed bullish momentum in the market.

Fartcoin Retraces to Falling Below $1

FARTCOIN’s price has dropped nearly 11% over the last 24 hours, making it the worst-performing altcoin of the day. Currently trading at $0.91, the meme coin is under pressure. 

The major challenge for FARTCOIN is to prevent further declines and reclaim the $0.92 support level. Successfully stabilizing at this level could pave the way for a rise beyond $1.02, pushing the meme coin back over $1.00.

FARTCOIN Price Analysis. Source: TradingView

However, if selling pressure persists, FARTCOIN’s price could fall to $0.80, invalidating the bullish thesis. This would indicate a more substantial downturn, with the possibility of continued losses in the market.