Why is the Crypto Market Red Today?

Bittime - The crypto market is experiencing quite a lot of pressure, today we see many digital assets experiencing price declines. Bitcoin, Ethereum, and various other major altcoins recorded declines in the last 24 hours. 

This follows a reduction in overall market capitalization of $84 billion (around IDR 1,327 trillion). So, what caused the crypto market to be in the red today? 

Is this a sign of a major correction, or a buying opportunity? Let's take a deeper look at the reasons for this decline and how the market may react in the near future.

Crypto Market Capitalization Decline

Source: BeIn Crypto

The total crypto market capitalization experienced a significant decline in the last 24 hours, hitting the numbers $3.53 trillion (around IDR 55.7 trillion). This decline was caused by increased selling pressure, where many investors chose to sell their assets after several days of sharp price increases. 

According to the latest data, if crypto market capitalization failed to maintain the support level at $3.49 trillion (around IDR 55.2 trillion), there is a possibility that the market will continue to be in a consolidation phase or even experience a further decline.

However, if this support level holds, there is hope that the market will strengthen again towards the next resistance at $3.64 trillion (around IDR 57.6 trillion). 

A rebound to this level could indicate that bullish sentiment is returning, which of course will be a positive signal for investors who hope that the market can continue its rally.

Read also: SPX6900 (SPX) Price Prediction: Murad's Favorite Meme Coin Will Fly 10X?

Bitcoin Fails to Maintain Support at $100,000

Source: BeIn Crypto

One of the main causes of the decline in the crypto market is Bitcoin, which fails to maintain a psychological level $100.000 (around IDR 1.58 billion). 

Bitcoin price is currently in a range $99.162 (around IDR 1.57 billion), which makes many investors worried that prices will continue to decline further. This decline indicates growing bearish pressure, which could affect the entire crypto market.

To strengthen again, Bitcoin must be able to reclaim $100.000 and make it a solid support level. If successful, Bitcoin can return to its upward trajectory $105.000 (around IDR 1.66 billion), which could revive investor confidence and encourage further increases. 

However, if the decline continues, there is the potential for Bitcoin to fall further towards $95.000 (around IDR 1.5 billion) or even lower. This will further worsen the short-term outlook and increase caution among traders.

PNUT Falls 6.37% in Last 24 Hours

Apart from Bitcoin, several altcoins also experienced significant declines. One of which is Peanut the Squirrel (PNUT) which plunged as big as 6,37% in the last 24 hours, lowering the price of the token to $1,35 (around Rp. 21,300). 

This decline reflects broader market uncertainty and shows the challenge for PNUT to restart the bullish momentum it has created.

For PNUT to rise again, this altcoin needs to overcome resistance at $1,69 (around IDR 26,700) and made it a support level. If successful, there is an opportunity for PNUT to strengthen again in the near future. 

However, if positive momentum is difficult to materialize, PNUT may consolidate within the price range $1,06 (around Rp. 16,700) up to $1,69 (around IDR 26,700), which indicates confusion among traders and the potential for stagnant prices.

Read also: Ripple (XRP) Coin: Causes of Increase and Latest Price Prediction

External Factors Affecting the Market

Apart from technical and psychological factors within the crypto market, several external factors also influence price movements. One of them is news about Cardano Foundation, which was hacked by irresponsible parties. 

The hacker spread false claims about a lawsuit from SEC against Cardano, which sparked panic among investors. This fake news was responded to quickly, but its impact is still visible in price movements THERE IS and other altcoins.

Apart from that, there are also reports that Amazon shareholders prompted the company to start buying Bitcoin as a hedge against inflation, following in the footsteps of large companies such as Tesla And MicroStrategy. 

While this could be good news for the crypto market in the long term, the impact is not immediately visible in today's prices.

Read also: The advantages of the Ripple USD (RLUSD) stablecoin and its impact on XRP

Conclusion

Why is the market red today? There are many factors influencing the current decline in the crypto market, starting from Bitcoin's inability to maintain important support levels to negative sentiment due to fake news circulating. 

However, as is often the case in the crypto world, this downturn could just be a temporary correction. Wise investors may see it as an opportunity to purchase an asset at a lower price, but it is still important to monitor market developments and the latest news before making an investment decision.

FAQ About Crypto

What is Crypto (Crypto)?

In general, crypto is a virtual asset whose security is guaranteed by cryptography. Cryptography makes it impossible to counterfeit or double-spend cryptocurrency. So, even though it is used virtually, there is no possibility of counterfeiting that would harm the owner.

What are the crypto laws in Islam?

According to the 7th MUI Ulama's ijtima' and the 2021 East Java NU bahtsul masail, crypto law and its transactions are haram. This is because crypto contains elements of gharar (unclear buying and selling/containing speculation) and dharar (transactions that can harm other people).

Can crypto be cashed?

In general, crypto has a high level of liquidity. Even its liquidity is free from national boundaries. This means, you can cash in crypto anywhere in the world. Crypto assets that have a high level of liquidity are the 3 main crypto assets, namely Bitcoin, Ethereum and Tether.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference

BeIn Crypto, Why Is the Crypto Market Down Today?, accessed December 9, 2024.

coinmarketcap, Coinmarketcap.com, accessed December 9, 2024.

Author: Y