Why Is The Crypto Market Down Today?

The total crypto market cap continued losing value as the market conditions failed to improve. Bitcoin (BTC) is now holding above a critical support level and is awaiting a bounce back. Pump.fun (PUMP), however, ended up emerging as the worst performer of the day, falling by 10.8%.

In the news today:-

• Florida lawmakers have proposed a bill to include Bitcoin in the state’s official investment portfolio. If approved, the measure would allow Florida to allocate up to 10% of select public funds into Bitcoin and other digital assets, making it one of the first US states to do so.
• The US government reportedly used a hidden exploit to seize 220,000 Bitcoin wallets, many still active. With the method now exposed, hackers may target these vulnerable addresses, prompting users to secure their funds immediately.

The Crypto Market Sees Red

The total crypto market cap has fallen by $60 billion in the last 24 hours, signaling renewed investor caution. TOTAL currently sits at $3.65 trillion, just below the $3.67 trillion resistance level.

TOTAL could extend losses if bearish sentiment continues to dominate the market. A drop through the $3.58 trillion support level could push the overall crypto market cap down to $3.49 trillion.

Total Crypto Market Cap Analysis. Source: TradingView

However, if market sentiment improves, TOTAL could rebound and reclaim $3.73 trillion as a key support level. Doing so would signal a potential recovery phase, paving the way for the crypto market to rise toward $3.81 trillion.

Bitcoin Tests Critical Support

Bitcoin’s price is currently at $109,075, holding steady above the critical $108,000 support level. This zone has historically served as a strong floor for BTC, helping prevent deeper corrections. Maintaining this support is essential for sustaining short-term market stability and avoiding a continuation of the ongoing bearish trend.

Over the past three months, every Bitcoin decline has been halted near the $108,000 support, triggering multiple rebounds. However, if BTC loses this level, the market could face intensified selling pressure, pushing prices toward $105,000. 

Bitcoin Price Analysis. Source: TradingView

If Bitcoin manages to bounce from $108,000 once again, it could reclaim $110,000 as support and aim for $112,500 next. A recovery of this magnitude would reinforce market optimism and invalidate the current bearish outlook.

Pump.fun Registers Monthly Low

PUMP price has declined by 10.8% in the past 24 hours, currently trading at $0.0034 above its key support level. PUMP continues to show weakness on the daily chart and could face additional downside unless broader crypto market conditions improve.

If selling pressure persists, PUMP could lose the $0.0034 support and slide toward the $0.0028 level. The token is already at its lowest point in nearly six weeks, and a further decline could signal extended bearish momentum.

SNX Price Analysis. Source: TradingView

However, if PUMP manages to rebound from the $0.0034 support level, it could rally past $0.0038 and $0.0041 to target $0.0047. A strong recovery from this point would signal renewed buying interest, potentially reversing the bearish outlook.