Bitcoin has experienced a significant downturn, now at $94,142, after a series of sell-offs. This raises several questions about the current situation in the cryptocurrency market.
How Are Cryptocurrencies Performing?
The overall market capitalization for cryptocurrencies has declined by 3%, reverting to the $3 trillion mark. Trading volumes have increased by 37%, targeting $100 billion; however, the selling trend persists strongly. Ethereum, after holding steady at $2,800, has slipped to $2,850, failing to maintain its gains despite Bybit’s substantial buying power.
What Impact is the Market Facing?
Solana (SOL) has also seen a decline, now trading at $152, while the demand for 'pumpfu' trading strategies remains high. In the past 24 hours, over $354 million in positions were liquidated, with long positions accounting for nearly $300 million. Funding rates for cryptocurrencies like SUI, ADA, and LINK have shifted negative.
What to Expect in the Future?
Bitcoin could potentially drop to $92,400 or even $87,000 in a negative news scenario, leading to double-digit losses for altcoins. Investor sentiment remains cautious due to SEC pressures and market conditions. This week's PCE data release could offer hope if positive, but the market remains uncertain.
The cryptocurrency market is in a challenging phase, with investors closely monitoring developments to adapt to rapidly changing conditions.
