What Caused the $2.48 Trillion Crypto Market Cap Dip?

The total crypto market cap dropped around 4 percent in the last 24 hours to about $2.48 trillion, led by Bitcoin (BTC). According to the latest crypto market data, Bitcoin exchanged around $64,253 on Thursday during the early Asian session after experiencing a significant resistance level of around $67k. 

Following the increased crypto volatility, more than $212 million was liquidated, mostly involving long-term traders. 

Top Reasons the Crypto Dropped Today

As a globally traded industry, the cryptocurrency market is heavily influenced by major geopolitical factors and other market issues besides the speculative aspect. 

General Market Outlook

On Wednesday, a popular crypto analyst, Ali Martinez, pointed out that the TD Sequential indicator had flashed a Bitcoin sell signal in the 12-hour time frame. As a result, the crypto analyst cautioned traders to remain wary after Bitcoin price dropped below the support level of around $65,500. 

Furthermore, Bitcoin whales have slowed the accumulation pace despite the recent halving event. Perhaps investors are waiting for companies to announce their first quarter 2024 earnings. 

Also Check Out : Crypto Market Braces for Mt. Gox Bitcoin Payout: Will Prices Sink or Swim?

Declined Spot BTC ETF Inflows 

On April 24, 2024, the net flow of US-based spot Bitcoin ETFs was negative $121 million after BlackRock’s iShares Bitcoin Trust (IBIT) registered a zero flow for the first time since inception. Meanwhile, Grayscale’s GBTC registered a cash outflow of about $130.4 million on Thursday.

BlackRock Denies Tokenization on Hedera

On Wednesday, heavy speculation on BlackRock tapping Hedera (HBAR) to tokenize its funds resulted in a huge spike of RWA-based digital assets.  However, BlackRock later confirmed that it has no commercial relationship with Hedera and does not intend to tokenize its funds on the network.

As a result, HBAR price dipped as much as 35 percent in the past 24 hours to trade around $0.1135 on Thursday.

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US Economic Uncertainty 

US President Joe Jiden has proposed a 44.6 percent tax on capital gains, impacting crypto investments worth more than $400k. Ahead of the FOMC statement and federal funds rate next week, investors are speculating on possible interest rate cuts’ delay later this year.