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In the last 24 hours, the total cryptocurrency market cap (TOTAL) has shed approximately $46 billion, as selling pressure surged following a brief rally in crypto asset values. Bitcoin (BTC), ever the trendsetter, wasn't immune to this decline, slipping down to $58,300 from the $61,000 level.
Meanwhile, ORDI led the altcoins in a less-than-desirable direction, posting an 8% drawdown. For now, we need a reality check on the crypto markets to understand what’s really happening.
To do that, we will have to draw a comparison between this week’s performance and last week’s perfomance where Bitcoin almost crashed below $50,000.
This crash from the $64,000 level was strongly influenced by Japan lifting its zero-interest loans for the yen which had been operating for years, and macro economic tensions in the United States. Both of these factors eased down as we entered this week and we had Bitcoin pump back to $61,000 on Monday.
Yes, it’s okay to say the markets have been stabilizing this week and finding support this week but what really has got it turning back from its gains over the last 24-hours is intensifying selling pressure due to an increase in the U.S Consumer Price Index data release which highlight that inflation cooled down to 2.9% in July YoY, thereby dropping from June’s 3.0%.
The total crypto market cap decided to take a little nap, dipping slightly to $2.03 trillion. Apparently, the excitement from the Asian session was too much to handle, and the selling pressure swooped in like a party crasher.
At press time, the total market capitalization is holding at $2.00 trillion, there could be a bounce off from this level incase bulls strengthen up and breach the $2.03 trillion.
Bitcoin Price Spirals Below $60,000
Bitcoin's price has done the cha-cha yet again, losing its $60,000 safety blanket faster than you can say "CPI report." After hitting a brief high of $61,850—like a kid on a sugar rush—investors decided to hit the sell button en masse, sending BTC spiraling down to $58,350.
Now, Bitcoin is doing its best tightrope walk above the $54,500 support level, which, like an old friend, has been there in tough times before. If BTC bounces back from this level, we might just see it take another swing at $60,000—leaving everyone wishing if only Trump and Musk mentioned the magic word during their oversubscribed X space this week.
While the crypto market took a bit of a hit over the past 24 hours, ORDI stood out as the biggest loser. Still, the dip was only a modest 8%, dropping its trading price to $28.4 at the time of writing.
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ORDI has been clinging to its downtrend line, but every attempt to rally has fallen flat over the past three months. If it drops below $27.7, we might see another downward spiral. If the altcoin bounces off this support, it could climb back to $34, putting the bearish outlook in the record of its burnt bridges.
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