Markets
Why is the market down today?
The total market capitalization of crypto (TOTAL) and Bitcoin (BTC) fell victim to Mt. Gox’s $5 billion move. The resulting drop also impacted altcoins, with Lido DAO (LDO) witnessing a sharp decline.
In today’s news:-
- Gox, one of the largest crypto exchanges in the world, went bankrupt a decade ago. Today, he took a step. This was the first transaction in five years, as around 75,000 BTC worth $5 billion changed address.
- Kaiko Research, in a report, predicted that the Grayscale Ethereum Trust (ETHE) could follow in the footsteps of its Bitcoin counterpart, GBTC. The report noted that ETHE could see average daily outflows of $110 million.
Gox sends waves across the crypto market
Total crypto market capitalization marked a red candlestick on today’s charts as Mt. Gox news sparked pessimism among investors. The combined value of all cryptocurrencies has fallen by $45 billion, but TOTAL is still at $2.48 trillion, around the $2.50 trillion key support.
See more information: 9 Best Altcoin Exchanges in 2024
Crypto market value analysis. Source: Trading View
If this depreciation intensifies, it could cause the crypto market’s valuation to fall further. This could send a TOTAL of $2.40 trillion.
Bitcoin price reacts in a similar way
Given that Mt. Gox’s $5 billion BTC movement was the driver of today’s market, the price of Bitcoin was bound to take a hit. The crypto asset fell just over 2%, which resulted in BTC losing support at $68,500. This is a critical support level; cementing it as a support floor is essential to observe recovery.
See more information: What happened in the last Bitcoin halving? Predictions for 2024
While a further drawdown is unexpected, unprecedented bear market conditions could pull BTC towards $66,000. However, reclaiming $68,500 as support could reignite optimism.
Lido DAO fails in a breach
The Lido DAO price rose considerably in the second half of May, but the last 24 hours have been different. As LDO got closer to breaking the critical resistance at $2.6, market winds changed from bullish to bearish. As a result, Lido DAO failed to breach and dropped to $2.4.
See more information: How to stake ETH with Lido
To attempt a breach again, investors and the market must press on. If this does not happen, LDO could fall to $2.2.
Disclaimer
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