Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin’s (BTC) price, along with the rest of the market, are taking a major hit as the market reacted poorly to the launch of spot Ethereum ETF. Amidst the altcoins, Helium (HNT) emerged as the biggest loser over the past day.

In the news today:-

• Hashdex files for combined spot Bitcoin and Ethereum ETFs. This is the first official combined filing following the launch of spot Ethereum ETFs this week.
• Grayscale Ethereum Trusts (ETHE) has recorded over $800 million worth of outflows, and Ethereum’s price is observing the impact of this, falling from $3,500 to $3,100.

The Crypto Market Is in a Decline

The last four days have not been bullish for the total crypto market cap, which has declined by $163 billion. Currently at $2.264 trillion, TOTAL has lost more than $90 billion in the last 24 hours.

After losing two major supports, TOTAL is currently hovering under $2.30 trillion and could drop to $2.20 trillion.

Read More: 11 Cryptos To Add To Your Portfolio Before Altcoin Season

Total Crypto Market Cap Analysis. Source: TradingView

A recovery would need support from retail investors, which is currently flailing. Reclaiming $2.30 trillion would trigger a bounce back for TOTAL.

Bitcoin’s Price Fails Breakout

Bitcoin’s price, which has been attempting to break out of the ascending broadening wedge, slipped on the daily chart. BTC dropped from $68,500 to $64,200 in the last four days and is now testing support at $63,100.

BTC, however, will bounce back. Unlike ETH, the inflows of the spot Bitcoin ETFs counter the bearishness from the broader market cues. A recovery to $67,000 is likely in the coming days, possibly before the end of the month.

Read More: Bitcoin Halving History: Everything You Need To Know

Bitcoin Price Analysis. Source: TradingView

Nevertheless, if the bearishness continues to intensify, Bitcoin’s price could succumb to it, potentially losing the support of $63,000.

Helium Price Cools After Recent Rally

Helium’s price experienced the largest drawdown of all altcoins, falling by 10% in the last 24 hours. This resulted in HNT losing support at $5.0 after failing to breach $5.5.

Trading at $4.7, the altcoin is facing a potential drop below the support of $4.5. If this does happen, Helium’s price could find support next at $3.8, which is a critical support floor for the altcoin

Read More: Helium (HNT) Price Prediction 2024/2025/2030

Helium Price Analysis. Source: TradingView

However, since $4.5 has been tested as a support level multiple times in the past, there is a chance that HNT could bounce back. This would invalidate the bearish thesis.