Why the Crypto Market Is Down Today

The total crypto market cap (TOTAL) lost about $46 billion over the last 24 hours as selling pressure mounted following a short-term spike in crypto assets’ value. Bitcoin’s (BTC) price witnessed a similar effect, falling to $58,300. ORDI emerged as the biggest altcoin to trade in red, marking an 8% drawdown.

In the news today:-

• US Consumer Price Index (CPI) increased to 2.9% year on year (YoY) in the month of July. The inflation numbers met the market expectations, falling down from 3.0% in June.
• Crypto.com announced its partnership with the UEFA Champions League. This made Crypto.com the league’s first crypto sponsor, enabling in-stadium activations, broadcast integrations, and exclusive global branding.

The Crypto Market Is Stabilizing

The total crypto market cap declined slightly over the last 24 hours to $2.03 trillion. Selling pressure intensified over the day after crypto-assets spiked during the Asian session. 

The rise was due to the US Consumer Price Index (CPI) data release. The change in CPI highlighted that inflation cooled down to 2.9% in July YoY, as forecasted. This is a decline from 3.0% in June, keeping the expectations of a rate cut intact.

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TOTAL currently holds above the support of $2.00 trillion and could see a bounce off from this level. The target for the crypto market cap still stands at breaching $2.03 trillion.

Bitcoin’s Price Falls

Bitcoin’s price lost the support of $60,000 over the last 24 hours following the release of CPI. Investors started selling after BTC spiked to the intra-day high of $61,850, resulting in a decline to $58,350 at the moment.

BTC is currently hovering above the support level of $54,500, which has also been tested in the past. A bounce back from this level is likely, as recovery could send the crypto asset back above $60,000.

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However, if the support is lost, BTC could end up noting a drawdown to $55,000, which is a key psychological support level. Any further decline would result in Bticoin hitting $54,500.

ORDI Absorbs The Hit

While the entire crypto market suffered slightly through the last 24 hours, ORDI emerged as the biggest loser. However, the decline was a meager 8%, bringing the trading price to $28.4 at the time of writing.

The altcoin has already been testing the downtrend line as support, but attempts to initiate a rally throughout the last three months have failed. This could prove to be true again if ORDI loses support at $27.7.

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If the cryptocurrency recovers from this support, it could observe a bounce back towards $34. This would invalidate the bearish thesis.