by Coinstrooper Crypto Articles
Quick Take
  • The crypto market is down today, with the cryptocurrency market capitalisation decreasing by 1%, now standing at $3.63 trillion.
  • A large majority of the top 100 coins have dropped over the past 24 hours.
  • At the same time, the total crypto trading volume is at $199 billion.
  • At the time of writing, 9 of the top 10 coins per market capitalization have seen their prices decrease over the past 24 hours.

What Happened

Despite today’s minor drop, there is room for investor confidence. Market optimism has been rising around Nasdaq and Cboe’s entry into regulated crypto trading.

“In the short term, Bitcoin’s market price fluctuates with macro conditions that drive global markets, business cycles, liquidity trends, and investor sentiment,” Perfumo says. “Over the long term, we believe Bitcoin’s hard money design, coupled with permissionless access and growing adoption, drive value accrual to the network.”

Market Context

The crypto market is down today, with the cryptocurrency market capitalisation decreasing by 1%, now standing at $3.63 trillion. A large majority of the top 100 coins have dropped over the past 24 hours. At the same time, the total crypto trading volume is at $199 billion.

At the time of writing, 9 of the top 10 coins per market capitalization have seen their prices decrease over the past 24 hours.

Bitcoin (BTC) has dropped by 1% since this time yesterday, currently trading at $105,168.

It’s followed by Dogecoin (DOGE)’s 2% to the price of $0.1771.

Also, the US Senate has passed a bill late Monday to reopen the government after the longest shutdown on record. Given that the shutdown tightened liquidity and increased volatility, the reopening is expected to be positive for crypto.

Large Sums of Idle Capital May Be Coming Back

Bitunix analysts commented that, although the US government reopening bill awaits final approval, “expectations of renewed liquidity have immediately lifted market sentiment.” Large sums of idle capital could soon return to circulation and reinvigorate risk assets, the comment says.

They write that “the turning point in the government shutdown offers a rare “liquidity window.” If the crypto market can seize this moment, a phase of sectoral rotation may follow. Nonetheless, non-major tokens and leveraged positions still face the challenge of cautious capital reallocation.”

The “implications are significant” for the crypto market:

the return of liquidity is likely to strengthen capital absorption for regulated majors such as BTC and ETH;

if regulatory agencies resume normal operations, the approval process for crypto ETFs and similar instruments could accelerate – this could create new entry opportunities for institutional capital.

At the time of writing on Tuesday morning, BTC trades at $105,168. The trading was quite choppy over the past day, ranging between $104,768 and $107,357.

Should the price move above $108,200 and hold that level, it could continue toward $111,000 and $113,000. A drop below $105,300 could lead to $104,000, followed by a move towards $100,000.

Why It Matters

That said, should there be a delay in approval or intensified regulatory review after the reopening, the renewed optimism could be dampened.

Details

Crypto Winners & Losers

Ethereum (ETH) is down by 1.3%, now changing hands at $3,558.

The highest drop in the category is 2.7% by Binance Coin (BNB), which trades at $977.

When it comes to the top 100 coins, six saw double-digit drops. Two of these are in the 20% zone. Canton (CC) fell 27.1% to $0.1111, while Zcash (ZEC) is down 26.6% to $489.

At the same time, Uniswap (UNI) is the only coin to record a double-digit rise, with an increase of 24.8%, now standing at $8.43.

Meanwhile, Kraken’s Global Economist, Thomas Perfumo, noted that in a matter of days, Bitcoin’s circulating supply will cross 19.95 million coins, or 95% of its max supply.

Levels & Events to Watch Next

BTC is currently 16.6% away from its all-time high of $126,080.