The post Why is Crypto Market Down Today appeared first on Coinpedia Fintech News
The cryptocurrency market is witnessing a downturn as Bitcoin struggles to hold its ground after reaching near its all-time high. The overall crypto market capitalization has fallen by around 4%, now sitting at approximately $3.54 trillion. Let’s dive into the factors driving this decline.
Trumps Accused of Pump and Dump Scheme
One key event shaking the market involves accusations against Donald Trump 
Donald Trump
Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election
President
and his team regarding a “pump and dump” scheme. Over the weekend, Trump-backed memecoins, including the Official Trump (TRUMP) token and Melania Trump’s self-branded memecoin, launched and soared in value.
Together, these tokens reached a combined market cap of over $15 billion. However, critics have accused the Trump family of manipulating the market for personal gain, which has created uncertainty among investors.
Profit-Taking Hits Bitcoin
Bitcoin, currently trading at $102,484, has seen a minor drop of 2%. This comes after an impressive 10% surge since in the last weeks. However, short-term holders appear to be cashing in on profits, contributing to the current price dip.
On-chain data from Santiment reveals that the 7-day Market Value to Realized Value (MVRV) ratio is nearing levels where investors typically book profits. Historically, when this indicator’s 7-day moving average (MA) reaches around 3%, a reversal tends to occur.
Liquidations Add to the Pressure
The market has also experienced heavy liquidations. According to CoinGlass, $1.18 billion worth of positions were liquidated in the past 24 hours as Bitcoin briefly dropped below $100,000.
Long traders were hit the hardest, with $921 million in liquidations compared to $260 million in short positions. Binance recorded the largest single liquidation order, valued at $15.24 million.
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What Next For BTC?
Despite the dip, Bitcoin’s breakout above $99,800 is seen as an important step forward. Experts believe the next key level to watch is $105,700. If Bitcoin moves past this, it could lead to higher prices.
While some profit-taking may cause a pullback into the $99,100–$100,400 range, strong buying interest at these levels could reignite momentum.Using Fibonacci levels, Bitcoin’s next major target is projected at $120,362, signaling optimism for the weeks ahead.
FAQs
The crypto market fell 4% as Bitcoin dropped to $102,484, with $1.18B liquidated and concerns over Trump memecoin controversies.
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