Why is Crypto Market Down Today
The cryptocurrency market is experiencing a downturn, with Bitcoin struggling to hold ground after hitting all-time highs. The total cryptocurrency market capitalization has fallen by approximately 4% and is currently About 3.54 trillion U.S. dollars. Let’s take a deeper look at the factors driving this decline.
Trump accused of pumping up sell-off plan
One of the key stories that rocked the market involved allegations of a “pump and dump” scheme against Donald Trump and his team. Over the weekend, Trump-backed meme coins, including the official Trump (TRUMP) token and Melania Trump’s own brand of meme coinslaunched and soared in value.
The total market capitalization of these tokens exceeds $15 billion. However, critics accuse the Trump family of manipulating the market for personal gain, creating uncertainty for investors.
Profit-taking hits Bitcoin
Bitcoin, currently Transaction price was $102,484a slight decrease of 2%. That number has surged an impressive 10% since the past few weeks. However, short-term holders appear to be cashing in on their profits, causing the current price drop.
Santiment’s on-chain data shows that the seven-day market cap to realized value (MVRV) ratio is approaching levels where investors typically book profits. Historically, reversals tend to occur when the indicator’s 7-day moving average (MA) reaches around 3%.
Liquidation adds to pressure
The market also experienced a severe liquidation. according to coin glassPositions worth $1.18 billion were liquidated in the past 24 hours as Bitcoin briefly fell below $100,000.
Long traders were hit the hardest, with $921 million in liquidations compared to $260 million in short positions. Binance set a single largest liquidation order worth $15.24 million.
What’s next for Bitcoin?
Despite the decline, Bitcoin’s breakout above $99,800 is seen as a significant step forward. Experts believe the next key level to watch is $105,700. If Bitcoin breaks above this point, it could lead to a price increase.
While some profit-taking could lead to a pullback to the $99,100 to $100,400 range, strong buying interest at these levels could reignite momentum. Using Fibonacci levels, Bitcoin’s next major target is expected to be $120,362, which bodes well for optimism in the weeks ahead.
