What Caused the $2.48 Trillion Crypto Market Cap Dip?
Elena R25 Apr 20242 min read
The total crypto market cap dropped around 4 percent in the last 24 hours to about $2.48 trillion, led by Bitcoin (BTC). According to the latest crypto market data, Bitcoin exchanged around $64,253 on Thursday during the early Asian session after experiencing a significant resistance level of around $67k.
Following the increased crypto volatility, more than $212 million was liquidated, mostly involving long-term traders.
Top Reasons the Crypto Dropped Today
As a globally traded industry, the cryptocurrency market is heavily influenced by major geopolitical factors and other market issues besides the speculative aspect.
General Market Outlook
On Wednesday, a popular crypto analyst, Ali Martinez, pointed out that the TD Sequential indicator had flashed a Bitcoin sell signal in the 12-hour time frame. As a result, the crypto analyst cautioned traders to remain wary after Bitcoin price dropped below the support level of around $65,500.
Furthermore, Bitcoin whales have slowed the accumulation pace despite the recent halving event. Perhaps investors are waiting for companies to announce their first quarter 2024 earnings.
Also Check Out : Crypto Market Braces for Mt. Gox Bitcoin Payout: Will Prices Sink or Swim?
Declined Spot BTC ETF Inflows
On April 24, 2024, the net flow of US-based spot Bitcoin ETFs was negative $121 million after BlackRock’s iShares Bitcoin Trust (IBIT) registered a zero flow for the first time since inception. Meanwhile, Grayscale’s GBTC registered a cash outflow of about $130.4 million on Thursday.
BlackRock Denies Tokenization on Hedera
On Wednesday, heavy speculation on BlackRock tapping Hedera (HBAR) to tokenize its funds resulted in a huge spike of RWA-based digital assets. However, BlackRock later confirmed that it has no commercial relationship with Hedera and does not intend to tokenize its funds on the network.
As a result, HBAR price dipped as much as 35 percent in the past 24 hours to trade around $0.1135 on Thursday.
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US Economic Uncertainty
US President Joe Jiden has proposed a 44.6 percent tax on capital gains, impacting crypto investments worth more than $400k. Ahead of the FOMC statement and federal funds rate next week, investors are speculating on possible interest rate cuts’ delay later this year.
