The total crypto market cap (TOTAL) and Bitcoin (BTC) have taken a hit as the market cooled down. The collective value of cryptocurrencies fell by $133 billion, led by Virtuals Protocol (VIRTUAL), which declined by 11.7% in 24 hours.
In the news today:-
- TeraWulf has secured a $3.7 billion deal with Fluidstack to develop an AI data center, with Google backing $1.8 billion for an 8% stake. The agreement will provide 200 MW of IT load over ten years, potentially expanding to an $8.7 billion partnership.
- Coinbase has completed its acquisition of Deribit, boosting stock prices and expanding its offerings to include perpetual contracts, options, and more. While these new derivative services are in development, it’s unclear when they will be available to all customers.
The Crypto Market Dips
The total crypto market cap has dropped by $133 billion over the last 24 hours, now sitting at $3.98 trillion. This decline is primarily due to US Jobless Claims and the PPI report, which led to large selling, affecting cryptocurrencies across the board.
Despite this downturn, the total market cap is holding above $3.94 trillion, which may signal a potential recovery. Given the strong bullish sentiment, the crypto market could see a bounce back, with TOTAL likely reclaiming $4.00 trillion as support. If momentum builds, further gains may follow.
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However, if the market experiences widespread selling, the total market cap could fall to $3.89 trillion or lower. Such a drop would wipe out recent gains and may indicate a shift toward a more prolonged downturn, impacting all cryptocurrencies.
Bitcoin Falls Below $120,000
Bitcoin’s price has fallen from its all-time high (ATH) of $124,474 to $118,833. The drop below the critical $120,000 level signals a pullback. Investors are cautious as the cryptocurrency faces resistance at this level, leading to temporary price declines.
Currently, Bitcoin is holding above the support level of $117,261. However, rising skepticism among investors could trigger further price declines. If this support is breached, BTC could drop to $115,000, which would suggest a continuation of the bearish trend and potential further downside risk.
If Bitcoin attracts demand from investors, it could bounce back and reclaim the $120,000 support level. A successful recovery above this level could lead BTC to push towards $122,000, signaling renewed upward momentum and a potential price rally.
Virtuals Protocol Takes a Hit
VIRTUAL’s price has been down 11.7% over the past 24 hours, and it is now trading at $1.21. Despite this decline, the altcoin is holding above the critical support level of $1.14, which has proven significant throughout this month. This support remains key in determining the next price movement.
Historically, VIRTUAL has bounced back from the $1.14 support level. If this pattern repeats, the altcoin could rise past $1.25 and potentially breach the $1.37 resistance. Investor confidence in the recovery may drive the price upward, continuing the momentum from previous rebounds.
However, if selling pressure intensifies, VIRTUAL’s price may fall below the $1.14 support level. Such a decline would invalidate the bullish outlook, with the price potentially slipping to $1.00. This scenario would signal a bearish shift, halting any potential recovery.
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