Crypto Market Cap Loses $46 Billion as Selling Pressure Mounts
Crypto Market Cap – The total cryptocurrency market cap (TOTAL) experienced a significant decline over the past 24 hours, shedding approximately $46 billion. This downturn follows a short-lived surge in the value of crypto assets, triggering intensified selling pressure across the market. The sudden drop in market value has raised concerns among investors, particularly as major cryptocurrencies like Bitcoin (BTC) faced notable declines.
US CPI Data Release Sparks Market Reactions
The recent dip in the crypto market coincides with the release of the U.S. Consumer Price Index (CPI) data for July, which indicated an inflation rate of 2.9% year-on-year (YoY). This figure aligns with market expectations, marking a slight decrease from the 3.0% inflation rate reported in June. Despite the anticipated decline, the CPI data contributed to the volatility observed in the crypto market, as investors reassessed their positions following the news.
Bitcoin Price Falls Below Key Support Levels
Bitcoin (BTC), the leading cryptocurrency by market capitalization, was not immune to the market’s turbulence. Over the last 24 hours, BTC saw its price fall below the critical $60,000 support level, currently trading at $58,300. The decline followed an intra-day high of $61,850, with investors quickly selling off after the CPI data release.
BTC now hovers above the support level of $54,500, a key threshold that has been tested previously. A recovery from this level could see Bitcoin reclaim the $60,000 mark. However, should this support fail, BTC may face further declines, potentially dropping to $55,000, a crucial psychological barrier. Any breach below this level could lead to a retest of the $54,500 support, adding to the bearish outlook.
ORDI Takes the Hardest Hit Among Altcoins
In the broader altcoin market, ORDI emerged as the most significant loser, experiencing an 8% drop in its trading price, now standing at $28.4. This decline further cements ORDI’s struggles, as the altcoin has been testing a downtrend line as support for the past three months. Despite multiple attempts to initiate a rally, ORDI has consistently failed to break out of its bearish trend.
Should ORDI lose support at $27.7, the altcoin could face further downside pressure. However, if ORDI manages to bounce back from this level, it may target a recovery towards $34, which would invalidate the current bearish scenario.
Crypto.com Partners with UEFA Champions League
In more positive news, Crypto.com announced a groundbreaking partnership with the UEFA Champions League, becoming the league’s first cryptocurrency sponsor. This partnership includes in-stadium activations, broadcast integrations, and exclusive global branding opportunities, marking a significant milestone for the cryptocurrency exchange.
Market Stabilization: A Glimmer of Hope?
Despite the recent downturn, the total crypto market cap remains above the $2.00 trillion support level, currently holding at $2.03 trillion. Market analysts suggest that if this support holds, the market could see a rebound, with the crypto market cap potentially aiming to breach the $2.03 trillion mark again.
The next few days will be critical in determining whether the market can stabilize or if further declines are on the horizon. Investors and traders will be closely watching key support and resistance levels, as well as any new economic data releases, to gauge the market’s direction.
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