Recent fluctuations in the cryptocurrency market have manifested in declining prices for leading assets such as Bitcoin and Ethereum. Analysts are considering potential reasons and recovery prospects.
Decline in Crypto Market Capitalization
The cryptocurrency market has dropped below $4 trillion, linked to the decline in prices for Ethereum, XRP, Solana, and others. Notably, DOGE declined over 10% in the past 24 hours.
Negative Impact on AI Coins
AI-related cryptocurrencies such as WLD, NEAR, and RENDER faced significant losses amid news that China is accusing Nvidia of violating anti-monopoly laws. This has also put pressure on asset prices.
Liquidations in the Crypto Market
The crypto market saw $450 million in liquidations over the last 24 hours, with most liquidations related to long positions, including the largest single liquidation order of $9 million on the Bybit exchange.
The decline in cryptocurrency prices and asset liquidations raises concerns among traders. However, analysts suggest that Bitcoin could recover to $120,000 with support from new capital inflows and upcoming decisions from the Federal Reserve.
