Is the Crypto Market Falling Today?

Many crypto assets faced volatility issues recently, leading to the cryptocurrency market heat map dominated by red. This is not happening for the first time, as with the start of the second quarter of 2024, the cryptocurrency market is going through significant price fluctuations and volatility issues.

This clearly demonstrates a market decline today where the CRYPTOCURRENCIES They are submerging. Many will be terrified of the market crash and could end up selling their cryptocurrencies, initiating selling pressure.

In this blog, let's analyze why the cryptocurrency market is falling today.

Crypto Market Overview

The global crypto market capitalization is $2.59 trillion and has faced a 3% decline in the last 24 hours. Trading volume also decreased to $99.71 billion after facing a 2.17% drop.

Although there is no major price drop in the case of Bitcoin and Ethereum, cryptocurrencies like dogwifhat, wormhole and some other meme coins have fallen considerably. Speaking of meme coins, the overall market capitalization has decreased by 5.95% and the trading volume has decreased by 6.63%.

Also read: Ripple CEO Brad Garlinghouse's Crypto Prediction for 2024

Previously, the Solana network was all the rage and dominated the cryptocurrency market. Now, the Solana ecosystem has faced a 2.25% drop in market capitalization and a 3.52% drop in trading volume. This overall crypto market crash has also affected the stablecoinsas the market capitalization decreased by 0.01% and the trading volume decreased by 0.67%.

In contrast to these, the AI altcoins have increased in terms of transactions as trading volume increased by 27%.

Why is the cryptocurrency market falling today?

Market volatility often leads to such price drops, crashing the cryptocurrency market. Reasons such as market sentiment and entering the correction zone have been associated with this decline.

Market sentiments

He fear and greed index The data has gone from yesterday's score of 79 to 75, which is a change from an area that is almost too greedy to an area that is simply greedy. It shows increased selling pressure in the cryptocurrency market where investors sell their cryptocurrencies instead of buying or HODLing them.

Although the current sentiment change has not been that big, compared to March data, the market is sluggish.

Cryptocurrency settlement

According to Coinglass data, around 99,403 cryptocurrency traders have been victims of liquidity in the last 24 hours. The total settlement data contains $274.74 million, and Bybit alone is responsible for the $8.38 million in settlements.

Bitcoin, Ethereum and Solana are the cryptocurrencies most affected by this liquidation.

Market correction before the halving

Halving Bitcoin It's just a few days away and mining rewards will be half after that. It will help maintain the scarcity of Bitcoin as production will decrease, but this will affect the miners.

Also read: 2 Altcoins to Sell Before Bitcoin Halving

Analysts have confirmed a Bitcoin correction ahead of the halving events, which is happening right now. This correction could continue for a few days before entering the pre-halving price rallyfollowed by a long post-halving period.

Although the effects of this are better, analysts believe that a shift from miners to others work test network after halving.

Final thoughts

Factors like market sentiments and liquidation play a huge role in the performance of the crypto market. For now, the cryptocurrency market has fallen and some cryptocurrencies have suffered, losing days of gains. However, there is a chance of recovery in the coming days.