The Cryptocurrency Market Plummets, and Bitcoin (BTC) Could Fall Below $40K

crypto market
Table of Contents

The crypto market is facing bearish trends that are affecting various cryptocurrencies, with notable losses seen in Solana (SOL) and Cardano (ADA), which experienced declines of 7% and 5.65% in the last 24 hours, trading at $87.29 and $0.4906, respectively. This widespread decrease is reflected in the CoinDesk 20 index, showing a 3.28% reduction in the same period.

Investors’ main concern lies in the fear of potential massive Bitcoin sales, leading to a reduction in market exposure in anticipation of lower prices. In this context, Bitcoin lost the key support level of $41,000, experiencing a 2.72% drop. It currently hovers around $40,600, and some analysts predict that prices could decline to $38,000 in the coming weeks, potentially impacting other cryptocurrencies negatively.

The downward pressure on BTC prices is attributed to sales linked to Grayscale’s Bitcoin ETF (GBTC), according to analysts, including Eric Balchunas from Bloomberg. Reports indicate that Grayscale transferred over $400 million in BTC to the Coinbase Prime custody platform, interpreted as a possible sign of an upcoming sale.

Although Some Resist, the Crypto Market Trembles Amid Bitcoin’s Volatility

However, the landscape is not uniform. Despite the bearish pressure on Bitcoin, other recently approved BTC ETFs, such as BlackRock’s IBIT and Fidelity’s FBTC, show net fund inflows. This positive flow suggests persistent demand for these financial instruments, partially countering the negative market sentiment.

crypto market

Regarding other cryptocurrencies, BNB lost 2.30% of its value in the last day, currently trading at $311.27. Nevertheless, it maintains relative stability due to demand from launch platforms that require the token on Binance. On the other hand, Dogecoin (DOGE), initially resistant to market fluctuations, retreated in the last 6 hours, experiencing a 4.8% drop and currently trading at $0.08213.

Bitcoin’s major competitor, Ethereum (ETH), did not escape the day without these bearish trends. It dropped 4.3% in the last session, with its current price at $2,373. The list of losers continues. XRP falls to $0.5278 after losing 4.56% of its value. Avalanche (AVAX), on the other hand, was one of the hardest-hit in the market, plummeting by 7% in the last hours and currently being traded at $30.90 per token.

Finally, Tron and Polkadot complete this list. Tron is fighting to overcome these trends, with a slightly over 2% recovery, currently being traded at $0.1085. On the other hand, Polkadot experienced a pronounced price drop, close to 4.6%, with its current value at $6.6.


Follow us on Social Networks

Crypto Tutorials

Crypto Reviews