Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) suffered the effects of sharing a strong correlation with the equities market. With the whole market noting a dip, Bitcoin (BTC) fell to $108,000 while Mantle (MNT) lost its value by 12.4% in 24 hours.

In the news today:-

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• Fetch.ai CEO Humayun Sheikh has offered a $250,000 bounty to uncover OceanDAO multisig wallet signers, escalating tensions with Ocean Protocol. The dispute stems from alleged fund misuse before the 2024 ASI Alliance merger involving Fetch.ai, Ocean Protocol, and SingularityNet.
• British Columbia has permanently banned new crypto mining connections to its power grid to safeguard electricity resources. The decision effectively ends prospects for new mining projects and limits expansion for existing operations in the province.

The Crypto Market Whiplashes

The total crypto market cap dropped by more than $84 billion in a single day, signaling heightened volatility across digital assets. The sharp correction reflects investor caution amid shifting macroeconomic trends.

TOTAL nearly rose by $103 billion during the intra-day high before retreating sharply to $3.61 trillion at press time. The correction highlights fragile market sentiment, suggesting that TOTAL could test support near $3.56 trillion if bearish momentum persists.

If macroeconomic conditions stabilize, TOTAL could rebound and flip $3.67 trillion into a new support zone. A climb toward $3.73 trillion and beyond would indicate renewed optimism and increased liquidity.

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Bitcoin Is Holding Above Support

Bitcoin failed to recover its latest dip, briefly nearing $114,000 before falling to $108,057 at press time. The cryptocurrency now holds above the crucial $108,000 support level, signaling cautious optimism.

If the decline extends, Bitcoin’s price could drop toward $105,585 or even slip through the $105,000 support. Such a move may deepen investor losses and trigger panic selling, amplifying bearish momentum.

Bitcoin’s price could invalidate the bearish outlook if it rebounds from the $108,000 support zone. A recovery toward $110,000 would indicate renewed buyer confidence and potential stabilization. Sustained momentum above this level could restore short-term bullish sentiment.

Ethena Notes A Rise

MNT price emerged as the biggest loser of the day, falling 12% to trade at $1.57. The concern is not the drop itself but the loss of the critical $1.59 support level. This breakdown suggests weakening market confidence.

For nearly a month, the MNT price managed to stay above $1.59, signaling a strong buyer presence. However, slipping below it now puts the altcoin at risk of further decline. The next major support lies at $1.47, where traders may look for a rebound or risk a deeper correction if bearish pressure intensifies.

If MNT price reclaims $1.59, momentum could shift back to buyers. A recovery toward $1.77 would mark the first sign of renewed strength. Should it maintain upward momentum, a rally toward $1.92 could follow.