Many crypto assets faced volatility issues recently, leading to the crypto market heatmap dominated by red. It has not happened for the first time, as with the start of the second quarter of 2024, the crypto market is going through major price fluctuations and volatility issues.
It clearly demonstrates a market fall today where the cryptocurrencies are dipping. Many will be terrified of the market crash and might end up selling their crypto, initiating selling pressure.
In this blog, let us discuss why the crypto market is falling today.
Overview Of Crypto Market
The global crypto market cap is $2.59 Trillion and has faced a decrease of 3% in the last 24 hours. The trading volume has also decreased to $99.71 Billion after facing a drop of 2.17%.
Though there is no major price fall in the case of Bitcoin and Ethereum, the cryptocurrencies like dogwifhat, wormhole, and a few other meme coins have dropped heavily. Talking of the meme coins, the overall market cap has decreased by 5.95%, and the trading volume is down by 6.63%.
Also Read: Ripple CEO Brad Garlinghouse’s Crypto Prediction For 2024
Earlier, the Solana network was trending and has dominated the crypto market. Now, the Solana ecosystem has faced a 2.25% drop in market cap and a 3.52% drop in trading volume. This overall crypto market fall has also affected the stablecoins, as the market cap decreased by 0.01%, and the trading volume is down by 0.67%.
In contrast to these, the AI altcoins have surged in terms of transactions as the trading volume is up by 27%.
Why Is The Crypto Market Falling Today?
Market volatility often leads to such price falls, crashing the crypto market. Reasons, like Market Sentiments and entering the correction zone, have been associated with this fall.
Market Sentiments
The fear and greed index data has shifted from yesterday’s score of 79 to 75, which is a shift from an almost too-greedy zone to a just greedy zone. It shows an increased selling pressure in the crypto market where the investors sell their cryptocurrencies instead of buying or HODL them.
Though the current sentiment shift has not been that huge, but compared to the March data, the market is slow.
Crypto Liquidation
According to the Coinglass data, around 99,403 crypto traders have been victims of liquidity in the last 24 hours. The total liquidation data contains $274.74 Million, and Bybit alone is responsible for the $8.38 Million in liquidations.
Bitcoin, Ethereum, and Solana are the most affected cryptocurrencies by this liquidation.
Market Correction Before Halving
Bitcoin halving is just a few days away, and the mining rewards will be half after that. It will help with maintaining the scarcity of Bitcoin as the production will decrease, but this will impact the miners.
Also Read: 2 Altcoins To Sell Pre-Bitcoin Halving
The analysts have confirmed a Bitcoin correction before the halving events, which is happening right now. This correction might continue for a few days before entering the pre-halving price rally, followed by a long run post-halving.
Though the effects of this are better, the analysts believe a shift of miners to the other proof-of-work network after halving.
Final Thoughts
Factors like market sentiments and liquidation play a massive role in the crypto market performance. For now, the crypto market is down, and a few cryptocurrencies have suffered, losing days of gains. However, there is a possibility of recovery within the next few days.
