Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin’s (BTC) price slid today as the broader market bearishness rose. Fantom (FTM) led the decline among the altcoins, falling to its lowest price in three months.

In the news today:

• Tether, the issuer of the world’s biggest stablecoin, USDT, launched Alloy by Tether, a tethered asset backed by Tether Gold. 
• zkSync’s newly launched token ZK witnessed massive selling at launch, resulting in a price fall. Nearly 41% of the addresses sold their entire airdrop, contributing to the total selling of 486 million ZK.

Total Market Cap Loses More

The total crypto market cap continues to experience a decline, shedding another $45 billion in the last 24 hours. This decline, adding to yesterday’s drop, has brought the total losses to $85 billion.

This ongoing bearish trend has persisted, reflecting investor concerns and market instability. The overall sentiment remains cautious as prices struggle to find a stable footing.

Currently at $2.3 trillion, if TOTAL remains above this mark, it could reclaim the uptrend’s support.

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Total Market Cap Analysis. Source: TradingView

However, losing this support could increase the total market cap to $2.2 trillion, marking a monthly low.

Bitcoin’s price is at the forefront of this downward trend, having hit another monthly low. The leading cryptocurrency had fallen below the $65,000 mark during the intra-day trading hours, highlighting the pressure faced by the market.

This decline is a major indicator of the broader struggles within the cryptocurrency sector. While BTC is changing hands at $65,540, it is still vulnerable to a decline. $64,883 is a critical support floor for the altcoin at the moment, and losing it would extend the losses.

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Bitcoin Price Analysis. Source: TradingView

On the other hand, a bounce off of it would initiate recovery, potentially allowing the altcoin to reclaim $66,000 as support.

Fantom Price Drawdown Reaches New Level

Fantom’s price, closely following Bitcoin’s trajectory, has also suffered considerable losses, hitting a three-month low. The cryptocurrency is now at risk of losing the $0.50 support level. If this key support is breached, it could signal further declines and contribute to the overall bearish sentiment in the market.

The next major support level is $0.45, and losing it would indicate that the bears are controlling the altcoin’s leash.

Read More: Fantom (FTM) Price Prediction 2024/2025/2030

Fantom Price Analysis. Source: TradingView

However, a bounce back from $0.50 would give FTM the necessary boost to recoup the recent losses. Reclaiming $0.63 as a support floor would initiate the recovery.