Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) led the cryptocurrency market in heavy losses in the past 24 hours after a profitable February. According to data provided through Coingecko and Binance-backed Coinmarketcap, the total global cryptocurrency market capitalization shed about 7.7 percent to stand around $2.5 trillion during the early London trading session on Tuesday.
Following the heightened cryptocurrency volatility, more than $526 million, with over $442 million constituting long traders, liquidated in the past 24 hours.
On Bitcoin’s USD derivative daily chart, the instrument has already signaled short-term weaknesses after dropping below the support range between $64,500 and $65,266 in the past 24 hours. As a result, the next few weeks will likely be choppy for Bitcoin and the entire crypto market.
Top Reasons Why the Crypto Market is Down Today
Pre-FOMC Risking-Off
On Wednesday, the United States Federal Reserve will release the highly anticipated benchmark interest rates after the past two Consumer Price Index (CPI) data show uneased inflation. Economists predict the Fed will hold on to the 5.50 percent interest rate but not decline.
Nevertheless, many uncertainties have been looming as the Fed commissioners lack confidence in hiking interest rates. As a result, cryptocurrency traders have been de-risking their traders to avoid forced liquidations.
Pre-Halving Healthy Market
After Bitcoin and the cryptocurrency market registered palpable profits in the past few months fueled by the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, a cooling period was expected to ensure a healthy market correction.
According to a famous crypto analyst, Ali Martinez, Bitcoin’s price will likely find a solid support level of around $61,100 in the coming weeks. In a sustained sell-off, the crypto analyst believes the support range between $51,530 and $56,685 will hold.
Altcoin and Meme Coin De-risking
The altcoin market and the meme coin industry have registered significant gains recently. The notable rise of new meme coins meant an inevitable profit-taking, which has escalated the cryptocurrency sell-off.
