The post Why is the Crypto Market Down Today? appeared first on Coinpedia Fintech News
During the early European session, the crypto market cap slipped around 4 percent in the past 24 hours to hover about $2.42 trillion on Thursday. Bitcoin (BTC) and Ethereum prices led the entire altcoin in a correction, which triggered notable liquidation.
The latest market data shows that Ethereum’s price slipped around 8 percent to trade at about $3,174. Bitcoin’s price continued with the recent correction to retest the 50-day Moving Average (MA) around $64k.
As a result, nearly $300 million was liquidated from the crypto derivatives market, mostly involving long traders.
Top Reasons Crypto Slipped Today
Notable Cash Outflows From Spot Ether US ETFs
The US-based spot Ethereum ETFs registered a net cash outflow of about $133 million, led by Grayscale’s ETHE, which has nearly $8 billion more to dump. The poor performance in the first two days of soot Ether ETFs has increased the crypto market pessimism.
Heavy Liquidations in the US Stock Market
Markets wipe out +$1.1 trillion from the US stocks today. pic.twitter.com/WlZkYSQrak
— Radar (@RadarHits) July 24, 2024
The US stock market lost around $1.1 trillion in valuation in the past 24 hours, almost equal to the entire Bitcoin’s market cap. The notable stock market liquidations sent shockwaves to the entire global markets despite the low correlation with the crypto industry.
The upcoming FOMC statement has further presented further market uncertainty in the mid-term.
Mt.Gox FUD
Bitstamp: We've received the Mt. Gox assets. We're working diligently to distribute them to our Bitstamp customers who are Mt. Gox creditors. Please allow up to one week for security checks. For UK residents, there will be a separate distribution plan. We'll inform you when the…
— Wu Blockchain (@WuBlockchain) July 24, 2024
In the past 24, Bitcoin’s fear and greed index slipped towards 68 percent suggesting more fear of crypto capitulation. The fear of further crypto capitulation was partially escalated by the Mt.Gox repayments to creditors, whereby the firm deposited more than $2 billion to the Bitstamp exchange in the last 24 hours.
