Why Is The Crypto Market Down Today?
The total crypto market cap (TOTAL), led by Bitcoin (BTC), fell on the charts today as the latter slipped to $87,000. Following BTC’s footsteps, Midnight (NIGHT) observed a 28% drop in the last 24 hours as well.
In the news today:-
- The Bank of Russia proposed new rules allowing both qualified and non-qualified investors to trade cryptocurrencies under separate frameworks. Crypto would be treated as a foreign currency asset, with non-qualified investors facing tests, token limits, and an annual trading cap.
- South Korea’s Financial Stability Report shows crypto investors have shifted from accumulation to profit-taking, even as Bitcoin surpassed $100,000. Despite Korea’s outsized influence on global crypto volumes, local traders are increasingly cashing out rather than adding exposure.
The total crypto market cap has dropped $58 billion over the past 24 hours, standing near $2.91 trillion. The decline followed a failed attempt to reclaim the $3.00 trillion level. Weak follow-through triggered caution as investors reassessed risk after the rejected breakout.
Today’s pullback was amplified by long liquidations, which accelerated selling pressure. Forced exits fueled fear across derivatives markets, pressuring spot prices. If liquidation-driven weakness persists, TOTAL could slide toward the $2.85 trillion level, increasing downside risk and reinforcing short-term bearish momentum.
TOTAL Price Analysis. Source: TradingView
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A recovery remains possible if bullish momentum returns. Improved sentiment and stabilizing derivatives conditions could attract fresh inflows. In that scenario, the crypto market cap may rebound and retest the $3.00 trillion threshold, signaling renewed confidence across major digital assets.
Bitcoin Is Facing a CorrectionBitcoin is trading near $87,025 after a corrective move over the past 24 hours. Weak follow-through buying suggests downside pressure remains. If selling persists, BTC could drift lower and retest the $86,247 support, a level closely watched by short-term market participants.
Market conditions remain directionless, increasing downside risk. The lack of a clear trend makes it difficult for Bitcoin to sustain rebounds. A decisive break below $86,247 could accelerate losses, exposing the $84,698 support and reinforcing short-term bearish sentiment across crypto markets.
BTC Price Analysis. Source: TradingView
A bullish reversal remains possible if momentum improves. Reclaiming $88,210 as support would signal renewed strength. Such a move could allow Bitcoin to rebound toward $90,308, invalidating the bearish outlook and restoring confidence among investors seeking a year-end recovery.
Midnight Holders Witness LossesNIGHT suffered a sharp 28% decline over the past 24 hours, with the price falling to $0.073 at the time of writing. The drop followed a loss of the $0.100 support, pushing the token below $0.075 and signaling a clear shift in short-term market sentiment.
Downside risk remains elevated under current conditions. The next significant support level sits at $0.060. If broader market weakness persists and buying interest fails to emerge, NIGHT could continue its decline toward this zone, extending losses and reinforcing bearish momentum.
NIGHT Price Analysis. Source: TradingView
A recovery scenario depends on reclaiming lost support. If NIGHT regains $0.075 and holds it, buyer confidence could improve. Such a move may open the path back toward $0.100, invalidating the bearish thesis and allowing partial recovery of recent losses.
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