Global Market Cap, Volume, and Dominance
The total volume of the cryptocurrency market in the past 24 hours decreased by 31.17% to $50.8 billion. Within that, DeFi volume accounted for 8.24% at $4.18 billion, while stablecoins contributed $46.54 billion, making up 91.62%. Bitcoin dominance slightly increased to 50.44%.
The global cryptocurrency market cap also experienced a decline of 1.9% to approximately $1.55 trillion in the past day. Bitcoin’s market cap dropped to $777 billion, with a dominance of 50.39%. Other major cryptocurrencies like Ethereum, BNB, Polygon, Litecoin, Chainlink, Tron, Dogecoin, and Cardano saw declines ranging from 2% to over 5%.
Bitcoin’s Plunge Below $40,000
Bitcoin fell below the $40,000 mark for the first time since the launch of the Bitcoin exchange-traded fund (ETF) on January 11. The introduction of Bitcoin ETFs made it easier for people to enter and exit the market, leading to increased selling pressure as users took profits or anticipated future rallies.
Experts believe that Bitcoin is at a critical point with a correction at $39,700. However, there is potential for a rebound with support at $38,500. If this support fails, the next important levels are at $37,800 (support) and $40,350 (resistance). Bitcoin has found support at the 100 EMA D, indicating a positive trend if it continues.
As of now, Bitcoin is trading slightly above $40k at $40,060.94.
Cryptocurrency Market Sentiment and Buying Activity
Despite recent challenges, the “Greed and Fear Index” has increased by 4 points to a score of 52, indicating a positive outlook and an increase in buying activity.
While Bitcoin struggled to surpass $40,000, Helium saw the biggest gain with a surge of nearly 24%, while Blur experienced the largest decline with a drop of 8.09%.
The trending new cryptocurrencies are MANTA and HONK, trading at $2.97 and $0.0095 respectively. MANTA has seen a 12.71% increase in the past 24 hours and a 30.95% increase in the past week. HONK is also experiencing bullish momentum with a 55.26% increase in the last 24 hours and a 285.6% increase in the last week.
Bottomline
As the cryptocurrency market goes through this turbulent period, it is important for investors to pay attention to support levels, market sentiment, and the performance of major cryptocurrencies. These factors will help navigate through these volatile times.
Hot Take: What Happened to Cryptocurrency Market Today?
The cryptocurrency market faced significant declines in the past 24 hours, with major players like Bitcoin, Ethereum, and BNB witnessing substantial drops. The total volume and market cap of the crypto market decreased, while Bitcoin fell below $40,000 for the first time since the launch of its ETF. However, there is potential for a rebound as support levels are identified. Despite these challenges, there is an increase in buying activity and positive market sentiment. It remains crucial for investors to monitor support levels and the performance of major cryptocurrencies during these volatile times.
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