Why Crypto Market Is Down Today ?
The cryptocurrency market experienced a recent downturn, with the total market capitalization decreasing by approximately 7.68% to $2.27 trillion. Bitcoin, the leading cryptocurrency, is currently trading at $67,279, marking a 7.69% decline over the past seven days, but showing a 4.98% increase in the last 24 hours. Meanwhile, Ethereum, the second-largest cryptocurrency, is trading at $3,527, reflecting a 10.25% decrease over the past seven days.
During this period, the market capitalization of cryptocurrencies dropped from $2.73 trillion to $2.53 trillion, with a 24-hour trading volume of $148.02 billion. These fluctuations were accompanied by significant price swings, notably with Bitcoin hitting a new all-time high of $73,750 before retracting to the $62,000 level within a short period.
Market sentiment has oscillated from extreme greed to a state of greed, indicating the volatile and unpredictable nature of the cryptocurrency market. Despite this volatility, the market has responded positively to global financial uncertainties and remains resilient amidst tightening credit situations and fluctuating bond markets.
However, it's important to note that the downturn observed is part of a broader correction that began on March 14, coinciding with a local peak of around $2.72 trillion. Bearish divergence signals emerged before the correction, with the market's rising capitalization juxtaposed with a declining daily Relative Strength Index (RSI), suggesting weakening underlying strength in price growth
Additionally, the significant decline in cryptocurrency prices triggered numerous liquidations in the derivatives market, totalling over $161.52 million in the last 24 hours. This wave of liquidations, particularly of long positions, has the potential to exert downward pressure on asset prices, especially in the absence of sufficient buying momentum indicated by trading volumes.