Why is the Crypto Market Down Today?
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The total crypto market cap dropped around 4 percent in the last 24 hours to about $2.48 trillion, led by Bitcoin (BTC). According to the latest crypto market data, Bitcoin exchanged around $64,253 on Thursday during the early Asian session after experiencing a significant resistance level of around $67k.
Following the increased crypto volatility, more than $212 million was liquidated, mostly involving long-term traders.
Top Reasons the Crypto Dropped Today
As a globally traded industry, the cryptocurrency market is heavily influenced by major geopolitical factors and other market issues besides the speculative aspect.
General Market Outlook
On Wednesday, a popular crypto analyst, Ali Martinez, pointed out that the TD Sequential indicator had flashed a Bitcoin sell signal in the 12-hour time frame. As a result, the crypto analyst cautioned traders to remain wary after Bitcoin price dropped below the support level of around $65,500.
Furthermore, Bitcoin whales have slowed the accumulation pace despite the recent halving event. Perhaps investors are waiting for companies to announce their first quarter 2024 earnings.
Declined Spot BTC ETF Inflows
On April 24, 2024, the net flow of US-based spot Bitcoin ETFs was negative $121 million after BlackRock’s iShares Bitcoin Trust (IBIT) registered a zero flow for the first time since inception. Meanwhile, Grayscale’s GBTC registered a cash outflow of about $130.4 million on Thursday.
BlackRock Denies Tokenization on Hedera
On Wednesday, heavy speculation on BlackRock tapping Hedera (HBAR) to tokenize its funds resulted in a huge spike of RWA-based digital assets. However, BlackRock later confirmed that it has no commercial relationship with Hedera and does not intend to tokenize its funds on the network.
As a result, HBAR price dipped as much as 35 percent in the past 24 hours to trade around $0.1135 on Thursday.
US Economic Uncertainty
US President Joe Jiden has proposed a 44.6 percent tax on capital gains, impacting crypto investments worth more than $400k. Ahead of the FOMC statement and federal funds rate next week, investors are speculating on possible interest rate cuts’ delay later this year.
