Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin’s (BTC) price both witnessed bearishness arising from a key development in the Mt. Gox case yesterday. The resulting panic led to massive sell-offs that liquidated over $300 million worth of long contracts. Surprisingly, some altcoins, including the likes of Fetch.ai (FET), benefitted from this.

In the news today:-

• Dallas Mavericks owner Mark Cuban moved to sell multiple NFTs from his collection. In the span of 48 hours, over 14 NFTs were sold by his address.
• German real-world asset (RWA) tokenization platform Swarm markets will enable the purchase of Gold NFTs. The gold bars securing the tokenization will be held in a London-based Brink’s vault.

The Total Market Cap Loses Big

The total crypto market cap experienced nearly $136 billion worth of outflows during the intra-day lows as the broader market turned bearish. TOTAL closed around the $2.20 trillion mark, which was a rather disappointing development.

The bearishness resulted from the FUD and panic arising from the news of Mt. Gox initiating BTC and Bitcoin Cash (BCH) repayments. This led to the market believing a sudden increase in selling following repayments could trigger a crash. Hence, investors moved to sell their holdings to secure their gains.

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Total Market Cap Analysis. Source: TradingView

As the FUD vanishes, recovery could take place once the $2.20 trillion level is flipped into support again.

Bitcoin’s Price Loses Key Support

Bitcoin’s price, following the concerning path of speculated selling, fell below $60,000 during yesterday’s intra-day low. The world’s biggest crypto asset managed to make a slight recovery, however, to close at $61,000 on Monday.

The summer sell-off has resulted in consistent bearishness among investors, making a recovery difficult for BTC.

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Bitcoin Price Analysis. Source: TradingView

Nevertheless, $63,000 is the level to watch, as securing it as a support floor is crucial to observing recovery again.

Despite market FUD, the net inflow to Bitcoin’s largest wallets reached its highest level since late May, states Senior Research at IntoTheBlock, Juan Pellicer.

“Significant accumulation by large Bitcoin holders has repeatedly signaled local market bottoms this year. Although the current figures are not as high as the peaks observed during previous accumulation phases, they occur at an interesting time—precisely when bearish market sentiment is spiking.” Pellicer added.

Fetch.ai Impresses Investors

While BTC and other top crypto assets suffered, some altcoins enjoyed the shift in the market’s sentiment, including Fetch.ai’s price. The altcoin, which fell to a three-month low, bounced back from $1.4.

In the last 24 hours, FET registered an 18% increase in price, bringing the altcoin to change hands at $1.6. Fetch.ai’s price is now set to breach the key resistance at $1.7.

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Fetch.ai Price Analysis. Source: TradingView

Doing so would further the recovery, but a failed breach might result in the altcoin falling down to $1.4, invalidating the bullish thesis.