Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) are experiencing the impact of ongoing negative macro-financial conditions. However, despite the broader market downturn, most altcoins are performing well. Bitget Token (BGB), on the other hand, has struggled, falling nearly 7% today.

In the news today:-

• The SEC dropped its investigation into Gemini with no charges, continuing its trend of closing cases this week. However, co-founder Cameron Winklevoss expressed dissatisfaction, calling for penalties to prevent future crypto crackdowns by SEC Chairman Gary Gensler.
• The SEC and Tron founder Justin Sun have requested a stay order in their civil fraud lawsuit while exploring a potential settlement. If granted, the stay would temporarily suspend further proceedings, with both parties aiming for a resolution that could lead to the lawsuit’s dismissal.

The Crypto Market’s Losses Rage

The total crypto market cap has seen a significant decline, losing $109 billion over the past day. Currently, it stands at $2.77 trillion, holding above the key support level of $2.75 trillion. This drop is reflective of a broader bearish sentiment affecting the financial markets in recent days.

The ongoing downturn in the crypto market is largely a result of the macro-financial markets’ losing streak. If this bearish trend continues, there’s a strong possibility of a further drop in the market cap, potentially falling to $2.50 trillion or lower, which would significantly impact investor sentiment.

Total Crypto Market Cap Analysis. Source: TradingView

However, should the total crypto market cap manage to hold above $2.75 trillion, a recovery may be in the cards. A bounce back from this support could enable the market to track toward $2.93 trillion, which serves as the next major resistance level.

Bitcoin Falls To $85,000

Bitcoin’s price is currently at $85,034 after nearly falling to $82,000 during Wednesday’s intra-day low. The cryptocurrency is now attempting to secure $85,000 as a key support level, which will determine whether the asset can initiate a rebound or continue its downtrend. 

If Bitcoin’s attempts to hold $85,000 fail, it could slide further. A drop could potentially bring the price to $80,313, extending the recent losses and increasing market uncertainty. This could signal a more prolonged period of consolidation and test investor confidence.

Bitcoin Price Analysis. Source: TradingView

However, if Bitcoin successfully flips $85,000 into support, it could make its way back up. This could propel the price to $87,041, followed by $89,800, bringing Bitcoin closer to key resistance levels. These price movements would indicate a bullish shift in momentum.

Bitget Token Hits 2-Month Low

BGB’s price has fallen by 7% over the last 24 hours, currently trading at $3.96. The altcoin is holding $3.87 as support, but the price remains vulnerable to further decline. The support at this level will determine whether BGB can reverse its recent downtrend or continue to slide.

After slipping below the $4.00 mark, BGB has reached a 2-month low. If the bearish trend continues, the price could drop further, potentially testing $3.50 or even lower. These declines would mark a further extension of losses and may signal sustained negative sentiment around the token.

BGB Price Analysis. Source: TradingView

The bearish outlook could be invalidated if BGB successfully reclaims $4.12 as a support floor. Doing so could set the stage for a price rebound, potentially pushing the altcoin to breach $4.90. Confirmed support at $4.12 would signal a recovery and offer more favorable market conditions.