What is the reason behind today’s decline in the Crypto Market?

The value of the cryptocurrency market has experienced a significant decline of more than 6% within the last 24 hours, amounting to approximately $2.7 trillion. This drop can be attributed to the leading cryptocurrency, Bitcoin (BTC), which initiated a notable sell-off, thereby tempering the previously optimistic market sentiment. Consequently, over $666 million has been liquidated from the crypto market, with long traders accounting for more than $531 million of this total.

As a result of this sudden sell-off, many short-term traders have sought refuge in the stablecoins market. Recent market data reveals that Tether’s USDT has achieved a 24-hour rolling trading volume of around $112.7 billion, surpassing the combined trading volumes of Bitcoin and Ethereum.

The primary reasons behind today’s slip in the crypto market can be attributed to a healthy market correction and the occurrence of a “sell the news” event. In terms of the former, it is important to note that a correction was anticipated prior to the halving rally. Notably, Bitcoin’s price has recently surpassed its previous all-time high (ATH) for the first time in the history of crypto bull markets, largely due to the increased demand for Bitcoin resulting from the approval of spot BTC ETFs in the United States. However, it was expected that a market correction would take place before the commencement of the halving rally. According to the Bitcoin analysis conducted by renowned crypto analyst Captain Faibik, the price of Bitcoin is likely to decline to approximately $60,000 in the coming days before experiencing a rebound that will lead to a new ATH.

Regarding the “sell the news” event, there has been considerable speculation in the altcoin market in the past few weeks following Ethereum’s Dencun upgrade. The activation of this upgrade on Ethereum’s mainnet on Wednesday swiftly transformed it into a sell-the-news event.

Despite the current market correction, it is anticipated that long-term investors will take advantage of the situation to acquire more digital assets.

Tags:
Altcoins
Bitcoin
Price Analysis