The total cryptocurrency market capitalization (TOTAL) and Bitcoin (BTC) have seen a sharp decline between yesterday (07) and today (08). This is due to changes in macroeconomic conditions.
A sudden spike in the 10-year US Treasury yield amid anticipation of the upcoming US employment report without any agribusiness data, the Nonfarm Payroll (NFP), significantly impacted market sentiment. Among altcoins, Celestia (TIA) emerged as the worst performer of the day, leading the downtrend.
In today's news:-
A US judge has paused the Coinbase v. Security Exchange Commission (SEC) case, granting the exchange permission to appeal whether its digital assets qualify as securities. The appeal seeks clarity on the application of the Howey test to Coinbase’s asset transactions.
Czech National Bank Governor Aleš Michl has suggested that Bitcoin could diversify the country’s foreign exchange reserves, though not as a major investment. Any decision would require board approval, with future exploration of cryptocurrency diversification possible.
Cryptocurrency market crashes
The total cryptocurrency market cap has fallen by $227 billion in the past 24 hours, settling at $3.28 trillion. This level is a critical support floor, and holding above it is essential to avoid further losses in the cryptocurrency market.
If support at $3.28 trillion fails to hold, TOTAL risks a deeper decline, potentially reaching $3.16 trillion. This would further erode investor confidence, underscoring the importance of holding current levels to stabilize market sentiment.
Cryptocurrency total market capitalization analysis. Source: TradingView
However, a successful bounce from $3.28 trillion could pave the way for TOTAL to reclaim $3.49 trillion as a support level. Such a bounce would restore optimism in the market, reversing today’s losses and reinforcing the bullish momentum.
Bitcoin below $100k
Bitcoin’s price has fallen 5.8% in 24 hours, falling from $102,000 to $96,290. This drop highlights the ongoing volatility in the market, causing concern among investors while also maintaining Bitcoin’s resilience above critical levels.
BTC is currently holding above the $95,668 support level, a key threshold to prevent further losses. If this support is breached, Bitcoin could see a deeper correction, potentially dropping to $93,625.
Bitcoin Price Analysis. Source: TradingView
On the other hand, a recovery to $100,000 remains the main target for bullish investors. Achieving this would require sustained momentum, signaling renewed confidence in Bitcoin’s ability to maintain the uptrend.
Celestia loses recent gains
TIA recorded a steep 14% decline, becoming the worst-performing cryptocurrency of the day. This drop saw the altcoin lose the critical support level at $5.0. Trading at $4.7, TIA mirrors the bearish trend of the broader cryptocurrency market, raising concerns about further price erosion.
If TIA maintains its position above $4.5, it could stage a rally towards $5.0, potentially regaining lost ground. However, a failure to hold this support could lead to a deeper correction, taking TIA’s price towards $3.8. Such a scenario would amplify the bearish sentiment among investors.
TIA Price Analysis. Source: TradingView
Conversely, reclaiming the $5.0 support would invalidate the downtrend, allowing TIA to chart a recovery towards $6.0. Reaching this milestone would signal renewed bullish momentum and restore investor confidence, positioning the altcoin for further growth.
The article Why is the crypto market down today, 01/08/2025? was first seen on BeInCrypto Brazil.
