In the past 24 hours alone, the total market value of cryptocurrencies has fallen by about 4%, with Bitcoin leading the decline, with a staggering drop of $67,000. It seems that the volatility in this market is getting bigger and bigger.
More than $212 million in funds were liquidated in the process, most of which involved long-term traders. It seems that this global trading industry, in addition to the speculative factors we are familiar with, is also deeply troubled by various geopolitical factors and other market issues.
So, what is the main reason for the cryptocurrency drop today?
As a global trading industry, the crypto market is deeply impacted by various major geopolitical factors and other market issues in addition to the speculation we are familiar with.
Overall Market Outlook
According to Ali Martinez, a well-known cryptocurrency analyst, the TD Sequential indicator flashed a Bitcoin sell signal on the 12-hour timeframe, and he warned holders to remain vigilant once Bitcoin fell below the support level of around $65,500. In addition, although the accumulation rate of Bitcoin whales has slowed down after the recent halving event, the market seems to be waiting for companies to announce earnings in the first quarter of 2024.
Spot BTC ETF inflows decline
The inflow of spot BTC ETFs has also declined, which makes people worry whether the future development of the cryptocurrency market will be affected.
Just yesterday, BlackRock's iShares Bitcoin Trust (IBIT) recorded zero flow for the first time since its inception, with net flows of US spot Bitcoin ETFs at negative $121 million.
Meanwhile, Grayscale’s GBTC had cash outflows of approximately $130.4 million on Thursday. This can’t help but raise concerns about the future development of cryptocurrencies.
BlackRock denies Hedera tokenization
On the other hand, speculation regarding BlackRock and Stellar Blockchain’s partnership to tokenize Hedera (HBAR) led to a surge in the RWA-based digital asset on Wednesday.
However, on Thursday HBAR prices fell 35% in the past 24 hours and were trading at around $0.1135. In response, BlackRock later confirmed that it has no commercial relationship with the Stellar blockchain and does not intend to tokenize its funds on the network.
Uncertainty in the U.S. economy
Additionally, the president has proposed a tax of up to 44.6% on capital gains, which undoubtedly affects cryptocurrency investors with assets worth more than $400,000.
Adding further uncertainty to this market, speculation is underway that a rate cut could be delayed later this year ahead of next week’s Federal Open Market Committee (FOMC) statement and announcement of the federal funds rate.
In this market environment full of challenges and opportunities, each of us needs to stay calm and invest rationally. After all, only we can decide how to make money. So, are you ready to meet the challenges and seize the opportunities? Let's move forward together in this market full of unknowns!
(Personal opinion, not a recommendation)
If you like it, please follow us for more articles.
