Date: Thu, August 01, 2024, 06:11 AM GMT
Today, the cryptocurrency market is seeing a significant decline, with major altcoins experiencing sharp drops in their prices. The total cryptocurrency market cap has fallen by 3.13% to $2.31 trillion, following Bitcoin’s (BTC) price rejection from the $70K resistance level. Currently, Bitcoin is trading at $64,88 down by 3.31%.
Notable altcoins are feeling the impact:
- Solana (SOL) is down by 7.72%.
- XRP (XRP) has declined by 5.76%.
- Cardano (ADA) is down by 5.06%.
Here’s Why Top Altcoins are Down Today:
1) Bitcoin Failed to Give Breakout:
Recently, Bitcoin had the opportunity to break out from a Bull Flag—a bullish continuation pattern, normally indicating further price increases. Despite the optimism presented in this technical setup, the price of Bitcoin couldn’t break through the crucial resistance level of $71K, but pulled back to $63,500, instead of an upward surge toward $80K. This inability to break out of the level has cast some uncertainty into the market, which in turn affected the prices of altcoins.
2) FOMC Meeting Impact:
Bitcoin price appears to have encountered significant selling pressure following the recent U.S. FOMC meeting wherein the Federal Reserve kept interest rates unchanged at 5.25%-5.50%
3) Mt. Gox Bitcoin Transactions:
Data from Arkham Intelligence shows that a Mt. Gox address moved 33.96K BTC ($2.25B) to addresses most likely BitGo for repayments for creditors. BTC could come under selling pressure if Mt. Gox creditors decide to sell their BTC to lock in sizeable profits This large-scale movement of Bitcoins is causing uncertainty and contributing to the market downturn.
4) ETF Outflows:
Recent US BTC-spot ETF market flow trends raised concerns about BTC-spot ETF demand.
On Tuesday, July 30, the US BTC-spot ETF market saw total net outflows of $18.3 million,
These factors are contributing to the current downturn in the cryptocurrency market, affecting not only Bitcoin but also various altcoins.
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