Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) led a significant downturn in the cryptocurrency market over the past 24 hours, following profitable gains in February. Data from Coingecko and Binance-supported Coinmarketcap reveals that during Tuesday's early London trading session, the global crypto market cap dropped approximately 7.7% to around $2.5 trillion.
Amid heightened volatility, over $526 million was liquidated within 24 hours, with long-position traders accounting for more than $442 million. On Bitcoin's USD derivatives daily chart, the asset displayed short-term weakness after breaking below the support range of $64,500–$65,266. This signals potential turbulence for Bitcoin and the broader crypto market in the coming weeks.
Key Reasons Behind Today's Crypto Market Decline
Risk Aversion Ahead of FOMC Meeting
The Federal Reserve is set to announce its benchmark interest rate decision on Wednesday, following inconsistent CPI data indicating unstable inflation. While economists predict rates will hold at 5.50%, the lack of confidence in rate cuts has spurred uncertainty. Crypto traders are reducing exposure to avoid forced liquidations.
👉 Learn how market trends impact crypto volatility
Pre-Halving Market Correction
Boosted by the U.S. approval of spot Bitcoin ETFs, Bitcoin and the crypto market have seen substantial gains in recent months. A cooldown period is now viewed as a healthy adjustment. Analyst Ali Martinez suggests Bitcoin may find solid support near $61,100, with a critical support zone between $51,530 and $56,685 likely to hold.
Altcoin and Meme Coin Profit-Taking
The altcoin and meme coin sectors recently experienced explosive growth. The surge in new meme coins has led to inevitable profit-taking, exacerbating the crypto sell-off.
Top Cryptocurrencies Worth Considering
SUI
Sui has rapidly entered the top 100 cryptocurrencies by market cap, driven by its Total Value Locked (TVL) surpassing $500 million. Key highlights:
- Liquidity: Trading volume-to-market cap ratio of 0.5704.
- Price Action: Trading above the 200-day SMA at $1.72 (up 17.09% intraday).
- Supply: Only 1.2 billion of 10 billion tokens in circulation.
- Sentiment: Fear & Greed Index at 77 (extreme greed).
- Forecast: Potential growth to $3.74 by year-end and $5.24 by 2025.
JUP
Jupiter, a Solana-based DEX, has seen its token price soar:
- Recent Performance: 15.55% daily and 178% monthly gains.
- Adoption: 29.6 billion total volume and 4.18 million transactions from 1.5M wallets this month.
- Technical Outlook: Trading above 200-day SMA and near all-time highs.
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FAQs
Q: Is this crypto crash temporary?
A: Market corrections are common after rallies. Long-term trends remain bullish, especially with Bitcoin’s halving approaching.
Q: Should I buy the dip?
A: Research projects with strong fundamentals (e.g., SUI’s TVL growth, JUP’s ecosystem expansion) and diversify to mitigate risk.
Q: How does the Fed’s decision impact crypto?
A: Higher rates may reduce speculative investments, but crypto’s decoupling from traditional markets is increasing.