The crypto market continues to plummet

Market overview

The crypto market capitalisation has lost a further 3.5% over the past 24 hours in a sharp sell-off that began this month. During this period, the capitalisation has fallen to $2.22T, and at its lowest point early in the day, it dropped to $2.17T, compared to $2.50T on Sunday. In this environment, market movements are characterised solely by varying degrees of decline: from -0.6% (TRON) and -3% (Hedera) to -15% (NEAR, Toncoin).

Bitcoin briefly fell to $61.3K early on Thursday, returning to the region of its February lows. In this region, the leading cryptocurrency found buyers during dips in February and March. A break below the lows from the start of the year would make the $53–55K range the next potential downside target. Although we do not see a sharp slide downwards, as was the case four months ago, the RSI is at roughly the same levels of extreme oversold conditions. It is also significant that, on weekly timeframes, BTC is once again testing the 200-week moving average, which has historically been a strong support level: the only period of a break below it was in the second half of 2022. Although nervous selloffs and technical slippage during the automatic execution of orders at times of reduced liquidity cannot be ruled out, it is quite likely that the market will take a breather from its decline. After all, even bears need a rest now and then.  

News background

According to Arkham, Cameron and Tyler Winklevoss, the founders of Gemini, transferred 1,000 bitcoins from Gemini Custody to their exchange’s hot wallet. Such transfers are usually seen as a sign that a sale is in the works.

The crypto market is suffering losses amid a rising stock market, particularly for companies operating in robotics and artificial intelligence. Uncertainty surrounding Congress’s adoption of the CLARITY bill is also exerting pressure, Bitwise notes. Who needs cryptocurrency now, when the Nasdaq-100 index has risen by 43% over the past year?

The outflow of funds from Bitcoin ETFs is just normal market noise, whilst Wall Street continues to bet on cryptocurrencies, according to Bloomberg Intelligence analyst Eric Balchunas.

The crypto market’s decline is caused by investors pulling out, not the end of the bull cycle, says BitMine CEO Tom Lee. In his view, everything that is happening fits the classic scenario of a market bottom forming and may precede a new phase of growth.

According to CoinDesk, major payment systems Visa, Mastercard and Stripe are exploring the possibility of creating a unified stablecoin platform. The largest US crypto exchange, Coinbase, could become a project partner. 

Summary: The crypto market has accelerated its decline: market capitalisation has fallen to $2.22T, whilst BTC is testing the 200-week moving average at $61.3K. Oversold conditions suggest a chance of a pause and the formation of a bottom.