The market experienced a notable downturn, with Bitcoin and altcoins facing significant declines. Bitcoin, after a brief uplift over the weekend, reaching above $64,000, encountered a setback, dropping below $62,000 as the new week began. This decline was mirrored by a broader slump across the altcoin market, leading to a substantial $60 billion decrease in the total crypto market capitalization.
Altcoins, in particular, felt the sting, with Ethereum, Solana, Dogecoin, Cardano, and others witnessing drops between 5% to 8% in just a day. Even Ethereum, which had seen a surge to over $3,300, couldn’t escape the downturn, sliding under $3,200. The most significant daily losses were observed in tokens like CORE, PEPE, GALA, MKR and FLOKI, each plummeting by around 9% to 11.5%. HNT was the top gainer of the top 100 with a gain of roughly 30% on the day at sits at $6.
This market movement comes in the wake of the Depository Trust Company’s (DTC) decision to exclude Bitcoin ETFs from collateral recognition, a move that has raised concerns about the liquidity and operational flexibility of financial institutions dealing with these products. Additionally, the market has been influenced by outflows from U.S.-based spot Bitcoin ETFs, signaling a cooling-off period where investors are reducing their exposure to risk amid economic uncertainties.
Despite these challenges, the crypto market’s resilience is noteworthy. The market is currently in a correction phase, potentially setting the stage for a rebound. Analysts are observing a bull flag pattern, suggesting that if the market can rally above certain levels, we might see a bullish target in the near future.
In other news, Bitcoin miners are finding a silver lining through increased transaction fees following the halving event, and celebrities like Eminem are making waves in the crypto space with endorsements, reflecting a continued interest in the sector despite the current bearish trends.
