Here’s What Is Happening In The Crypto Market Today

A day after the US Independence Day celebrations, the crypto market is experiencing a mild pullback, dampening the enthusiasm of bulls. BTC, ETH, XRP, and ADA have posted lukewarm numbers as the global cryptocurrency market capitalization sheds nearly $100 billion in a day.

Crypto Markets Record Underwhelming Numbers

Cryptocurrency prices have failed to match the enthusiasm of the July 4 celebrations in the US, falling by nearly 1% the day after. According to CoinMarketCap data, the cryptocurrency market has lost nearly $1oo billion in what experts are terming a “mild correction.”

Bitcoin, the largest cryptocurrency, fell to a daily low of $107,296 from a high of $108,381, dousing enthusiasm for a weekend run to set a new all-time high. Bitcoin is only 3.49% away from equalling its all-time high of $111,970, but the odds of a new peak have slumped following today’s crypto market slump.

Ethereum, mirroring Bitcoin’s movement, has also posted a similar underwhelming price performance. The second-largest cryptocurrency is trading at $2,495, falling from a daily peak of $2,529 and showing little signs of a recovery.

Other altcoins are recording lackluster price movements with Cardano, Solana, XRP, and Dogecoin in the red. Despite the decline, some memecoins are in the green with BONK surging by nearly 9% over the last day, leading to other smaller-cap coins.

On the eve of July 4, the crypto markets surged as Bitcoin, XRP, and Ethereum racked up notable upticks.

What Is Fuelling The Decline?

Several reasons are behind the broader crypto market decline today, but the biggest needle mover is a 3.6 billion crypto options expiry. Nearly $3 billion in Bitcoin and another $600 million in ETH contributed to the selloffs recorded in the market.

The on-chain activity of dormant whales waking up has stoked fears of a mass selloff, triggering a mass sale. Recently, a Satoshi-era Bitcoin whale moved 20,000 BTC, continuing a streak of dormant whale accounts resurfacing after 10+ years. Another benign reason appears to be post-holiday profit-taking by traders after a strong end to June.

Another reason behind the decline is the fading hopes of a July Fed rate cut following the release of strong US job data. Previously, the odds for a Fed rate cut in July spiked to 23% amid calls by the FHFA for a Senate investigation of Jerome Powell.