Markets
Why is the market down today?
Both the total crypto market cap (TOTAL) and Bitcoin (BTC) fell victim to the $5 billion Mt. Gox move. The resulting downtrend also impacted altcoins, Lido DAO (LDO) is experiencing a sharp decline.
In the news today: –
- Mt. Gox, one of the largest crypto exchanges in the world, went bankrupt ten years ago. Today he made a move. This was the first transaction in five years, around 75,000 BTC worth $5 billion changed addresses.
- Kaiko Research, in a report, predicted that Grayscale Ethereum Trust (ETHE) could follow in the footsteps of its Bitcoin counterpart GBTC. The report states that ETHE could see average daily outflows of $110 million.
Mt. Gox sends waves to the crypto market
The total crypto market cap marked a red candlestick on the charts today as the Mt. Gox news stoked investor pessimity. The combined value of all cryptocurrencies fell by $45 billion, but TOTAL is still holding at $2.48 trillion, around the key support of $2.5 trillion.
Learn more: 9 Best Altcoin Exchanges in 2024
Analysis of the market capitalization of cryptocurrencies. Source: Trading View
If this depreciating uptrend intensifies, it could cause the crypto market valuation to further decline. This could send a TOTAL of $2.4 trillion.
Bitcoin price reacts in the same way
Given that Mt. Gox’s $5 billion BTC move was driving the current market, the price of Bitcoin was bound to take a hit. The crypto asset fell just over 2%, resulting in BTC losing support at $68,500. This is a critical support level; Cementing it as a supporting floor is essential to note recovery.
Learn more: What happened in the last Bitcoin halving? Predictions for 2024
Although further decline is unexpected, unprecedented bearish market conditions could pull BTC to $66,000. However, grabbing $68,500 as support could reignite optimism.
Lido DAO fails a violation
The Lido DAO price increased significantly during the second half of May, but the last 24 hours have been different. As LDO was about to breach the critical resistance at $2.6, the market wind shifted from bullish to bearish. As a result, Lido DAO failed to breach and slipped to $2.4.
Learn more: How to stake ETH with Lido
To make another attempt at a breakthrough, investors and the market must apply pressure. If this does not happen, LDO could fall to $2.2.
Disclaimer
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