Amid the ongoing geopolitical tensions between Iran and Israel and in anticipation of the upcoming Bitcoin halving event later this week, Bitcoin experienced a 4.2% decline, dropping to \(61,151 during early Thursday trading. Similarly, Ethereum, the second-largest cryptocurrency, also saw a decline of over 4.4%, settling at \)2,960.
In the past 24 hours, both BTC and ETH witnessed a significant decrease of more than 4%. This downward trend is likely influenced by the geopolitical unrest and the approaching BTC halving, a known event historically associated with heightened market volatility. Additionally, negative ETF data has played a role in shaping market sentiment, according to insights shared by the CoinDCX Research Team.
As a result of the dip in leading cryptocurrencies, the overall global cryptocurrency market cap contracted by 3.5% to approximately $2.24 trillion within the same 24-hour period.
Crypto Tracker
45,379 (-0.18%)
84 (-0.26%)
247,932 (-3.94%)
5,099,026 (-4.22%)
10,872 (-7.22%)
Several other prominent crypto assets, including Solana (7.4%), XRP (3.7%), Dogecoin (7.8%), Toncoin (11%), Cardano (4%), Shiba Inu (4.4%), and Avalanche (4.3%), also experienced declines. The majority of altcoins faced challenges in price appreciation. This trend coincides with the imminent Bitcoin halving, which is only two days away, with industry analysts predicting that the price correction phase may persist for some time, as per insights from the CoinSwitch Market Desk.
Furthermore, the total volume within the DeFi sector currently stands at \(6.98 billion, constituting 7.15% of the total 24-hour volume in the cryptocurrency market. Concurrently, the volume of all stablecoins amounts to \)91.53 billion, representing 93.89% of the total 24-hour volume in the crypto market, as reported by CoinMarketCap.
In the past 24 hours, the market capitalization of Bitcoin, the dominant global cryptocurrency, contracted to \(1.2 trillion. Bitcoin’s market dominance is currently recorded at 53.84%, based on CoinMarketCap data. Noteworthy is the 8% surge in BTC volume over the last 24 hours, reaching \)42.4 billion.
Commenting on the market conditions, Rajagopal Menon, Vice President at WazirX, highlighted that investor sentiment indicates potential further weakness, with significant buyers refraining from making purchases. Menon identified the key support level for BTC at \(59,000, suggesting that a breach could lead to a correction towards the \)45,000-$50,000 range.
Meanwhile, Sathvik Vishwanath, Co-Founder & CEO of Unocoin, pointed out that technical analysis signals bearish sentiment, with \(59,869 serving as a critical support level. A breach of this level could trigger a sharp sell-off towards \)57,135 and $54,359.
(Disclaimer: Recommendations, suggestions, views, and opinions expressed by experts are their own and do not necessarily reflect the views of The Economic Times)