Why is The Cryptocurrency Market Down Today?

Paigambar Mohan Raj
Source: The Economic Times

The cryptocurrency market has faced a significant correction in the last 24 hours. Bitcoin (BTC), the largest crypto by market cap, has dropped 4.8% in the daily charts, currently sitting at around $43k. Solana (SOL), one of the top performers of 2023, has faced a 7.8% correction in the last 24 hours, and its price is hovering just above $100. Moreover, the global cryptocurrency market cap has dropped 4.8%, currently at $1.73 Trillion.

The crypto market lost around $100 billion in 24 hours, which analysts say is completely normal. According to CrediBULL Crypto, ‘Funding was […] already pretty much back to baseline before the drop occurred.’

Also Read: Bitcoin: BlackRock Delays $10 Million BTC Purchase, Here is Why

According to CoinGlass data, there was $700 million in liquidations in the last 24 hours. Moreover, 85% of the liquidations were for long positions, which are people who were bullish on the market.

Why did the cryptocurrency market plummet?

cryptocurrencies token cryptocurrency crypto coins
Source: Analyticsinsight.net

There were reports that the US SEC (Securities and Exchange Commission) will reject a spot Bitcoin (BTC) ETF (Exchange Traded Fund). These reports may have caused a panic among investors. According to cryptocurrency analysis firm Lookonchain, BTC’s price fell 10% after Matrixport said that the SEC would reject the spot BTC ETF application.

However, despite the reports, industry experts are confident that the US SEC will approve one or more spot BTC ETFs this month. If the SEC greenlights a spot BTC ETF, the crypto market may witness another bull run.

Also Read: Bitcoin Miners Massive Sell-Off Raises Investor Concerns

Another reason for the recent market correction could be the massive sell-off from miners. According to cryptocurrency analyst Ali Charts, BTC miners sold around 4000 BTC in the last ten days, worth over $176 million. The massive sell-off may have added to investor worries.