Why Did the Cryptocurrency Market Fall Today?
Reflecting investor sentiment on HODLing, the TOTALCAP is at $2.36 billion. After failing to break through resistance at $68,500, Bitcoin is hovering around $66,500. After hitting a new all-time high, Mog Coin is one of the day’s biggest losers, down 17%.
As investors choose to wait for the launch of Ethereum spot ETFs, the total cryptocurrency market capitalization (TOTALCAP) is holding steady at around $2.40 trillion.
Despite a surge in BTC ETF inflows, bitcoin prices are reacting similarly. The broader market downtrend, however, had a much more severe impact on the cryptocurrency meme Mog Coin.
Crypto Market Waiting for A Trigger
The total cryptocurrency market capitalization has fallen below the $2.40 trillion mark in the last 24 hours. The reason for this is the highly anticipated Ethereum spot ETFs, which are expected to launch on July 24th.
Commenting on the ETH spot ETFs, Matteo Greco, Research Analyst at Fineqia, noted the following:
“…Market participants expect strong interest in ETH spot ETFs and significant inflows in the first 3-6 months after launch. It will be critical to compare net inflows to BTC, taking into account different market capitalizations, to gauge the appetite of traditional financial investors for digital assets beyond bitcoin.”
Launching these ETFs could be the trigger the market is looking for to get TOTALCAP to $2.40 trillion and beyond. The TOTALCAP could still fall to $2.30 billion due to the lower probability of a drop. This would be the case if the launch does not generate the optimism that is expected to be witnessed.
Bitcoin Price Needs to Break to Move Higher
Bitcoin at $66,700 is still trying to find a solid base from which to bounce above critical resistance at $68,500. In order to recover, the cryptoasset needs to stabilize and avoid a crash. This would require strong bullish signals.
The recent high inflows into bitcoin spot ETFs have also not been that effective in pushing the price higher. Sharing his thoughts on the inflows, Greco said the following:
“The BTC Spot ETFs experienced strong inflows last week, with net inflows of approximately $1.2 billion over five trading days, following net inflows of more than $1 billion the previous week. The BTC Spot ETFs have seen net inflows for ten consecutive trading days, averaging more than $200 million per day. In particular, Tuesday saw net inflows of more than $400 million, while Friday saw net inflows of approximately $385 million.”
He then added:
“This significant inflow has brought the cumulative net inflow into the BTC Spot ETFs since inception to $17 billion, a new all-time high. Trading volumes are also increasing, with cumulative volume now totaling more than $335 billion, including $11 billion in the last week alone, averaging approximately $2.2 billion per day. This high volume is notable given that July and August are typically slow months for traditional financial markets, and marks the highest weekly average daily volume since April.”
A reversal from the $68,500 level to the support level would lead to a move above the $70,000 level and beyond. If the breakout fails, do not be surprised to see BTC fall to $64,800.
Mog Coin Plummets 17%
After a 17% drop in the last 24 hours, Mog coin emerged as the cryptoasset with the biggest losses. Although BONK was close behind, MOG saw the biggest drop among all memecoins.
The next step for the meme cryptocurrency is to test the support at $0.000001904. This would allow a rebound. On the other hand, a loss of this support could be a prolongation of the wait for another all-time high.
By Leonardo Perez