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Crypto Market Faces Decline

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Crypto Market Faces Decline

Bitcoin Slips Below Support

 

📉 Growing Concerns in the Cryptocurrency Market

🗒 Market Overview

The total global cryptocurrency market capitalization fell by 0.4% today to $3.87 trillion. This decline broke a major support level that had previously acted as resistance, fueling speculation about a possible deeper correction toward $3.6 trillion.

Bitcoin (BTC) dropped to $114,700, returning to levels last seen two weeks ago and now trading below its 50-day moving average. This dynamic raises fears of a further drop toward around $100,000, near the 200-day moving average.

Ethereum (ETH) also fell to $4,200, losing more than 12% from its recent peak and now seriously testing the $4,100 support level — a zone that has capped price growth since March 2024. Holding this level could signal a regime shift for the cryptocurrency, especially given the notable capital inflows observed in recent weeks.


🌐 Background and Key News

  • CoinShares reported that global investment in cryptocurrency funds surged more than sixfold last week to $3.748 billion — the largest inflow in the past four weeks.

    • Bitcoin: +$552 million
    • Ethereum: +$2.868 billion
    • Solana: +$177 million
    • Ripple (XRP): +$126 million
    • Sui: +$11 million
  • Glassnode data shows that the number of addresses holding more than 10,000 BTC has fallen to a one-year low, with wallets holding 1,000–10,000 BTC also decreasing — a sign that large holders are taking profits after hitting record highs.

  • Canary Capital projects a 50% chance that Bitcoin will reach $140,000–$150,000 by the end of 2025, but warns of a bear market beginning next year.

  • Solana achieved a historic record of 107,540 transactions per second (TPS) during a stress test. However, actual throughput is around 3,700 TPS, still 59 times faster than Ethereum’s main network.


📊 Summary and Outlook

With key support levels broken and total market capitalization in decline, traders remain on high alert. On the other hand, substantial inflows into crypto funds and the growth of certain networks like Solana could help offset some downward pressure. Nevertheless, the market’s sensitivity to macroeconomic data, interest rates, and blockchain technology developments in the coming weeks will be critical in shaping its next move.

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