Why is The Crypto Market Down Today?

The total crypto market cap (TOTAL) fell by $82 billion in 24 hours as the Elon-Trump feud exploded on Thursday. Bitcoin (BTC) followed, leading to bearish cues, nearly falling to $100,000 during the intra-day lows. Among the altcoins, Lido DAO ended up taking the biggest hit, falling by 13% in a day.

In the news today:-

• Circle has gone public under the CRCL ticker, marking the first major stablecoin company to do so in the US. The company’s USDC stablecoin is the 7th largest cryptocurrency, with a market cap of $61.4 billion.
• Uber CEO Dara Khosrowshahi expressed interest in accepting stablecoins as a payment method but dismissed Bitcoin investment claims. While he has previously mentioned the possibility of crypto payments, there is no official timeline or roadmap for the move.

The Crypto Market is Red

The total crypto market cap saw a significant drop of $82 billion, largely due to the escalating feud between Elon Musk and Donald Trump. Musk’s statements sparked a volatile reaction, which led to a sharp decline in Tesla shares, down 14%, and a broader impact on the cryptocurrency sector.

The market reacted to the tensions, with TOTAL falling to $3.16 trillion. Despite efforts to hold the support, increased selling pressure and panic may push the total market cap further down to $3.09 trillion. This could signal a deeper correction, reflecting investor uncertainty over the ongoing feud.

Total Crypto Market Cap Analysis. Source: TradingView

If the market calms and investors recognize the overreaction, there’s a chance for recovery. The crypto market cap reclaiming $3.21 trillion as support could mark a shift, potentially invalidating the current bearish momentum. A return to stability could help the market bounce back from the recent volatility.

Bitcoin Slips On The Charts

Bitcoin’s price struggled recently, tracking market cues that led it to an intraday low near $100,000. However, the crypto king managed to recover, currently trading at $102,633. Despite the turbulence, Bitcoin has shown resilience, holding on above significant support levels.

If the momentum continues, Bitcoin is likely to flip $102,734 into support. This would open the door for a potential rise to $105,000, pushing the price higher. Positive market sentiment and consistent buying could lead to a further price surge for Bitcoin in the coming days.

Bitcoin Price Analysis. Source: TradingView

Nevertheless, if Bitcoin fails to break through $102,734, it risks falling back toward $100,000. This would extend losses, leading to a potential price drop that invalidates the bullish outlook.

Lido DAO Hits Monthly Low

LDO faced a significant downturn, becoming one of the worst-performing altcoins of the day. The price of Lido DAO dropped by 13.45% in just 24 hours, reflecting the broader market’s bearish trend. The altcoin has struggled to maintain upward momentum amidst the negative sentiment.

Currently trading at $0.76, LDO remains vulnerable to further price corrections. If the altcoin faces continued selling pressure over the weekend, it could dip further, potentially reaching the $0.69 support level. This would solidify the ongoing bearish momentum and could lead to more significant losses in the short term.

Lido DAO Price Analysis. Source: TradingView

However, LDO could regain some stability if it successfully flips the $0.77 resistance level into support. Doing so would set the stage for a recovery, with the price likely pushing toward the $0.89 resistance. If this happens, the bearish outlook would be invalidated, and a price increase could follow.