Markets
Reasons why the crypto market has declined today
With a 2% drop in global market capitalization, today is a slow day for the crypto industry. Currently, the overall crypto market capitalization has fallen to $2.55 trillion after soaring to $2.63 trillion earlier. Additionally, most cryptocurrencies are colored red on the heatmap, confirming the market fall.
During the last 24 hours, Bitcoin Price decreased by 3%, Ethereum Price lost 3% of its gains despite overwhelming demand for the Ethereum ETF, and the rest followed suit. So, what is behind this fall? Let’s discuss it in this blog.
Why was the crypto market down today?
After the bullish market conditions in March, the crypto market collapsed until recovering a few days ago. Market sentiments have also shifted towards greed from neutral at present. fear and greed indexbut the decline pierced the bullish possibilities.
There were mainly two reasons behind this decline; Mt Gox Bitcoin Transfer and Falling Bitcoin ETF Flows. Let’s look at this.
Mt Gox transferred $9 billion worth of BTC
After almost 10 ten years of stopping, Mount Gox, a popular crypto exchange at the time, made a transfer of 141,686 BTC (worth $9.3 billion in BTC) to three unknown wallets. This transfer is an attempt to return to its investors who lost their funds in the 2014 hack. However, these $9 billion worth of BTC represented a huge amount, causing panic among crypto investors instead of providing relief for transfers.
Today, #MtGox moved every 141,686 $BTC($9.63 billion) to 3 new portfolios and 142,846 $BCH($66.4 million) to a new portfolio.
These transfers are in preparation for reimbursements.
The refund deadline is October 31, 2024.https://t.co/amB6lnQXtf
New wallets:https://t.co/Lw9fpadxEj… pic.twitter.com/mX5CZrhYvH
– Lookonchain (@lookonchain) May 28, 2024
The transfer took place in 13 parts, their destination being the three anonymous addresses. Transactions ranged between $3 billion and $2.2 billion worth of BTC, sending the BTC price down to $67,918.13 from the high of $70,000, causing overall selling pressure in the crypto market.
Additionally, Mt Gox became the 11th largest BCH crypto whale address as one of its wallets moved 142,846 BCH tokens (worth $69.7 million) to an unmarked address.
Bitcoin ETF Flows Became Stationary
The Bitcoin ETF is flat after witnessing huge demand earlier this month. Currently, the BTC ETF entry rate is limited at $13.68 billion for the third day in a row, slowing down market growth. This comes after breaking the ten-day record for increasing ETF inflows data through the 25th, when recorded net inflows were $252 million. This indicates growing investor concerns over short-term gains in the crypto market.
US-based Bitcoin spot ETFs saw the highest net inflow last week since mid-March. pic.twitter.com/Z1yJIkQsyB
–Mads Eberhardt (@MadsEberhardt) May 27, 2024
However, investors remain optimistic despite the crypto market falling, and the Ethereum ETF approved plays the most important role. With the discussion on the Upcoming ETF projectstraders are eyeing the altcoin rally with anticipation of an initial bull run.
Continue reading Best Cryptos to Buy Under $2 to Make Millions