Markets
Why the Cryptocurrency Market is Down Today
The total cryptocurrency market capitalization (TOTAL) and Bitcoin price are exhibiting a delayed reaction to Friday’s Nonfarm Payrolls (NFP) release. The impact can be seen across the market as well, with Brett falling more than 20% in a day.
In today’s news:-
- South Korea announces the launch of a “continuous monitoring system” for suspicious transactions on cryptocurrency exchanges.
- USDT issuer Tether CEO Paolo Ardoino said this is the only way to “protect people’s privacy and ensure resilience/independence.”
Cryptocurrency market slides
Total crypto lost a critical support level of $2.00 trillion as the market witnessed outflows worth nearly $150 billion. This reduction added to the ongoing decline in the crypto market, taking TOTAL to $1.95 trillion.
The next critical support is at $1.88 trillion, and a decline to that level is possible given the recent positive Nonfarm Payrolls report. In June, U.S. jobs increased by 206,000, exceeding expectations of 190,000, although down from May’s 218,000.
Read more: 11 Cryptocurrencies to Add to Your Portfolio Ahead of Altcoin Season
Total Cryptocurrency Market Capitalization Analysis. Source: Trading view
However, the impact of the jobs report on the crypto market is likely to be negative. TOTAL would need to regain $2.00 trillion as support to recover from this.
Bitcoin Price Drops Below $55,000
Bitcoin price witnessed a sharp 4% drop in the last 24 hours, taking the trading price to $54,300. The drop below $55,000 is worrying for investors as this is the last critical support before BTC drops to $50,900.
This level is the target set by the double top pattern formed in March and July, which suggests that another 8% drop is likely.
Read more: Bitcoin Halving History: Everything You Need to Know
However, recovery is possible if the crypto asset rebounds and flips $55,000 to support again. This would be crucial to taking BTC back to $58,800.
Brett leads meme coin decline
Brett’s price saw a 22% drop as meme coins followed broader market cues to record a decline. The altcoin is now trading at $0.102, down from $0.135. Since the meme coin doesn’t have a position of its own at the moment, the crypto asset will follow Bitcoin’s lead.
This could lead to a drop below $0.100, potentially resulting in a monthly low for the Brett price.
Read more: 7 Best Base Chain Meme Coins to Watch in July 2024
However, the meme coin is still above the $0.100 support, which gives the altcoin an opportunity to recover. Expectations are for a rally back to $0.14, and if successful, it could invalidate the bearish thesis.
Disclaimer
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