The market capitalization of cryptocurrencies has fallen by more than 6% in the past 24 hours to about $2.7 trillion. Bitcoin (BTC) price led a notable decline in the altcoin market, cooling bullish sentiment. As a result, over $666 million was liquidated from the crypto market, of which over $531 million consisted of long traders.
The sudden drop in cryptocurrencies has caused most short-term traders to take refuge in the stablecoin market. According to the latest market data at the time of this report, Tether's USDT 24-hour rolling trading volume is approximately $112.7 billion, which is higher than Bitcoin and Ethereum combined.
The main reasons why the cryptocurrency market fell today
healthy market correction
For the first time in the history of the crypto bull market, Bitcoin price exceeded its all-time high (ATH) before the halving event. Rising demand for Bitcoin through the recently approved Spot BTC ETF in the US has been a major contributor to the recent bullish trend.
However, a healthy market correction was expected before the halving rally began. According to a Bitcoin analysis by popular crypto analyst Captain Fibig, Bitcoin price is likely to fall towards $60,000 in the coming days before rebounding towards the new ATH.
sell news events
In recent weeks, there has been intense speculation in the altcoin market following Ethereum's Dencun upgrade. With the upgrade enabled on Ethereum's mainnet on Wednesday, the upgrade quickly turned into a news-touting event.
Nevertheless, the correction in the crypto market is expected to allow long-term investors to acquire more digital assets.
