Reasons Why Crypto Market Declined Today

With a 2% decline in the global market cap, today marks a slow day for the crypto industry. As of now, the overall crypto market cap has declined to $2.55 Trillion after surging to $2.63 Trillion earlier. Moreover, most cryptocurrencies are stained in red in the heatmap, confirming the market fall.

In the last 24 hours, Bitcoin price has declined by 3%, Ethereum price lost 3% of its gains despite the overflowed demand for the Ethereum ETF, and the rest following the same. So, what was behind this fall? Let us discuss that in this blog.

Why Was the Crypto Market Down Today?

After the bullish market conditions in March, the crypto market went for a downfall until the recovery a few days ago. The market sentiments have also shifted to greed from neutral on the fear and greed index, but the drop pierced through the bullish possibilities.

Mainly there were two reasons behind this drop; Mt Gox’s Bitcoin transfer and the drop in the Bitcoin ETF Inflows. Let us look into that.

Mt Gox Transferred $9 billion worth of BTC

After almost 10 ten years of shutdown, Mt Gox, a popular crypto exchange of that time, made a transfer of 141,686 BTC ($9.3 billion worth of BTC) to three unknown wallets. This transfer is an attempt to return to its investors who lost their funds during the 2014 hack. However, this $9 Billion worth of BTC was a huge quantity, causing panic among crypto investors instead of relief over the transfers.

Today, #MtGox moved all 141,686 $BTC($9.63B) to 3 new wallets and all 142,846 $BCH($66.4M) to a new wallet.

These transfers are in preparation for repayments.

The repayment deadline is Oct 31, 2024.https://t.co/amB6lnQXtf

New wallets:https://t.co/Lw9fpadxEj… pic.twitter.com/mX5CZrhYvH

— Lookonchain (@lookonchain) May 28, 2024

The transfer happened in 13 parts, with their destination being the three anonymous addresses. The transactions ranged from $3 to $2.2 billion worth of BTC, dropping the BTC price to $67,918.13 from the $70K peak, causing overall selling pressure in the crypto market.

Also, Mt Gox became the 11th largest BCH crypto whale address as one of its wallets moved 142,846 BCH tokens (worth $69.7 Million) to an unmarked address.

Bitcoin ETF Inflows Turned Stationary

Bitcoin ETF comes stationary after witnessing a huge demand earlier in the month. As of now, the BTC ETF inflow rate is restricted at $13.68 billion for the third consecutive day, slowing the market growth. This comes after breaking the ten-day record of surging ETF inflows data till the 25th when the net recorded inflows were $252 million. It indicates the investor’s growing concerns over the short-term gains in the crypto market.

The U.S.-based Bitcoin spot ETFs saw the highest net inflow in the past week since mid-March. pic.twitter.com/Z1yJIkQsyB

— Mads Eberhardt (@MadsEberhardt) May 27, 2024

However, the investors are still bullish despite the crypto market fall, and the Ethereum ETF approval plays the most significant role. With the discussion over the upcoming ETF projects, the traders are eyeing the altcoin rally with the anticipation of an early bull run.

Continue Reading Top Cryptos to Buy Under $2 To Make Millions