Why is The Crypto Market Down Today?

The total crypto market cap (TOTAL) is down $107 billion, and Bitcoin (BTC) lost a crucial support as well. Cardano (ADA) took a significant hit in the last 24 hours among the altcoins as it declined by nearly 9%.

In the news today:-

• SkyBridge Capital, led by Anthony Scaramucci, plans to tokenize $300 million in assets on the Avalanche blockchain, increasing the volume of real-world assets traded by 160%. The move involves two funds, one focused on cryptocurrencies and the other on venture capital and crypto assets.
• Meta is reportedly downsizing its AI division, with high-level executives leaving and third-party contractors taking over AI product development. This restructuring has caused turbulence in the AI-related token sector, leading to price drops across major assets, signaling potential concerns for the industry’s future.

The Crypto Market Declines

The total crypto market cap has dropped by $107 billion in the last 24 hours, settling at $3.77 trillion. This decline follows growing concerns over the SEC’s investigation into Alt5 Sigma, which recently formed a $1.5 billion partnership with Trump’s World Liberty Financial, creating market uncertainty.

If investor sentiment worsens, the crypto market cap could fall further. A breakdown of the $3.73 trillion support level would signal a deeper decline, potentially pushing the market down to $3.56 trillion. This would reflect increased bearishness and heighten concerns about further losses in the sector.

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Total Crypto Market Cap Analysis. Source: TradingView

However, if the market can regain the $3.81 trillion support level, it could trigger a recovery. A bounce back above this level would open the door for a potential rise toward $3.89 trillion, signaling a shift in momentum and renewed optimism in the market.

Bitcoin Falls Below $115,000

Bitcoin has dropped over 3% in the last 24 hours, slipping below the crucial $115,000 support level. As of now, BTC is trading at $113,461. This decline reflects ongoing bearish pressure, with market sentiment shifting in response to broader market trends and investor concerns over potential downturns.

Bitcoin’s price remains above $112,526, a critical support level that has helped maintain stability since the beginning of the month. If the price falls below this level, BTC could head toward the $110,000 mark. This would signal further weakness, increasing the risk of more significant declines in the short term.

Bitcoin Price Analysis. Source: TradingView

However, if market conditions improve and bullish sentiment prevails, Bitcoin may regain momentum. Reclaiming the $115,000 support level would signal the first step in a recovery. If successful, this move could pave the way for a rise to $117,261, marking a potential shift back toward a positive trend.

Cardano Falls Flat

Cardano experienced a sharp 9% decline over the last 24 hours, now trading at $0.84. The altcoin lost the critical $0.90 support level, which has led to increased concerns among investors. The drop in price is attributed to broader market weakness, which is affecting many cryptocurrencies.

Currently, ADA is holding above the $0.83 support level, but its recent decline has pushed it further from the $1.00 mark. Given that the drop was largely influenced by broader market trends, the negative sentiment could persist, potentially pushing Cardano below $0.80 if the market remains bearish.

ADA Price Analysis. Source: TradingView

If market conditions improve and investors take a more optimistic stance, Cardano could see a price rebound. A successful bounce back above $0.90 would invalidate the bearish outlook and signal a potential recovery.