{"id":605058,"date":"2024-04-25T12:30:17","date_gmt":"2024-04-25T12:30:17","guid":{"rendered":"https:\/\/wncen.com\/?p=605058"},"modified":"2024-04-25T12:28:01","modified_gmt":"2024-04-25T12:28:01","slug":"why-crypto-market-down-today-reasons","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/why-crypto-market-down-today-reasons\/","title":{"rendered":"Why Is The Crypto Market Down Today? Key Reasons Explained"},"content":{"rendered":"

The crypto market is in the red today, with a majority of the top-100 cryptocurrencies reflecting losses over the last 24 hours. Notably, only six altcoins<\/a>, including two stablecoins, have managed to maintain a positive performance amidst a broader market sell-off.<\/p>\n

Several complex and intertwined factors have contributed to the day’s negative market sentiment, affecting major cryptocurrencies. Over the last 24 hours, the price of Bitcoin has decreased by 4.2%, Ethereum has fallen by 5.0%, Solana has dropped by 8.7%, XRP has declined by 4.7%, and Dogecoin has decreased by 8.3%.<\/p>\n

#1 Persistent Macroeconomic Uncertainty<\/h2>\n
A primary factor influencing today\u2019s market movements is the evolving macroeconomic landscape, particularly concerning US interest rates and inflation expectations. At the beginning of the year, the market anticipated aggressive monetary easing by the Federal Reserve. However, the sentiment has shifted considerably based on recent data and Federal Reserve signals.<\/p>\n
\u201cMarkets are pricing in fewer rate cuts for this year compared to the Fed\u2019s dot plot projection of 3 rate cuts by year end. The implied fed funds rate for December has risen to 5.0%, indicating that the futures market is pricing in only 1 to 2 rate cuts,\u201d Cetera Investment Management stated<\/a> via X (formerly Twitter).<\/p>\n
This week, all eyes are on the release of the Personal Consumption Expenditures (PCE) price index for March\u2014the Fed’s favored inflation measure<\/a> on Friday, April 26 at 8:30 am EDT. Until then, the market could be in a derisk mode.<\/p>\n
Related Reading: How To Outperform In Crypto: Arthur Hayes\u2019 \u2018Left Curve\u2019 Strategy<\/a><\/div>\n
The PCE is anticipated to present a varied view of inflation trends, which could strengthen the Federal Reserve’s inclination to delay any increases in interest rates. Analysts predict a slight increase in the overall PCE Price Index, rising to 2.6% year-over-year from 2.5% in February. Additionally, they expect a decrease in the index’s month-over-month change, dropping to 0.30% from 0.33%.<\/p>\n
#2 Crypto Market In Shock Over Legal Action Against Samourai Wallet<\/h3>\n
The crypto market has also been rocked by yesterday\u2019s legal developments<\/a> involving the Samourai Wallet. The US Federal prosecutors\u2019 decision to charge the founders Keonne Rodriguez and William Lonergan Hill with money laundering and operating an unlicensed money transmitting business has sent ripples through the crypto community. This action underscores the ongoing regulatory scrutiny within the crypto space.<\/p>\n
The prosecution of Samourai Wallet’s founders not only raises questions about the future of cryptographic privacy but also significantly impacts market sentiment as it underscores the legal risks inherent in the crypto sector. The implications of this case extend beyond the immediate legal concerns, influencing broader market perceptions and investor confidence.<\/p>\n
#3 Bitcoin And Crypto Are \u201cJust Ranging\u201d<\/h3>\n
Further insights into market dynamics come from prominent crypto analysts who have commented on the state of market liquidity and trader behavior. “The market has gifted us with a beautiful reset in trader positioning for Bitcoin. OI weighted funding turned negative<\/a> for the first time since October 2023. That was before Bitcoin ran from 27k to 46k without any meaningful dip,” said<\/a> Ted, a crypto analyst on X.<\/p>\n
This reset refers to a reduction in the overheated futures market, which could allow the market to consolidate and potentially build a base for future upward movements.<\/p>\n
Related Reading: Akash Network (AKT) Leads Crypto Top 100 With 46% Rise Today: Here\u2019s Why<\/a><\/div>\n
Emperor, another crypto analyst, described the current market state through a series of tweets, highlighting the ongoing consolidation phase post-highs: “Too much panic still on the timeline but we’ve been ranging since the ATH, that’s all.\u201d<\/p>\n
He added, \u201cThe bear\/bull line is an important resistance + Point of Control (PoC) of our range. Expecting VaL (Value Area Low) to hold on pullbacks and VaH (Value area High) to be the next target on longs if we reclaim level 1.\u201d<\/p>\n
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Bitcoin Price Update <\/p>\n
Too much panic still on the timeline but We've been ranging since the ATH, that's all<\/p>\n
1. The bear\/bull line is a important resistance + Point of Control (PoC) of our range.
Expecting VaL (Value Area Low) to hold on pullbacks and VaH(Value area High ) to\u2026 pic.twitter.com\/4UTExqQv0n<\/a><\/p>\n
— Emperor\ud83d\udc51 (@EmperorBTC) April 24, 2024<\/a><\/p><\/blockquote>\n