- Global crypto market cap plunges to $2.11 trillion
- Bitcoin plunges to $56k
- Analysts say Bitcoin miners showing “signs of capitulation”
The cryptocurrency market on July 4 witnessed a bleedout as the global crypto market cap plunged to $2.11 trillion, a 5.32% decrease over the previous day. This came on the heels of major declines across nearly all coins, including Ethereum, BNB, and Solana.
Even Bitcoin, the chief of all cryptocurrencies, was not left out: it was trading at $56,867.92, down 5.62% in the past 24 hours, at the time of writing. The market cap was 5.56% down at $1.12 trillion, while the volume of trade in the past 24 hours was up 37.70% at $37.99 billion.
Credit: TradingView
Since the beginning of July, when Bitcoin reached over $63,500, the price has been steadily declining. Experts say this is because the bulls were unable to keep up the buying pressure, so sellers intervened and drove the price to its current levels.
Why is the crypto market declining?
Popular crypto analysts, QCP, have stated that Bitcoin miners seem to be showing “signs of capitulation,” which is a historical indicator that frequently precedes a market bottom.
The analysts, however, pointed out that the market is still positive despite the overall sell-off. They also pointed out that interest in Ethereum call options with September and December expiries is "heavily skewed," suggesting that investors are still bullish on ETH even as Bitcoin continues to decline.
Additionally, a number of factors that have the potential to buck the current downtrend were discovered by QCP analysts. Significant liquidation clusters exist on the top side of both Ethereum and Bitcoin, which may lead to short squeezes and higher prices, the analysts said, adding that the upcoming approval of S-1 forms, which "may result in a hard bounce in ETH," is another possible trigger.
Credit: X/Julio Moreno
According to Coinglass data, the total amount of cryptocurrency liquidations increased by 114% in the last day to $265 million, while global market capitalization fell to levels not seen in two months.
Julio Moreno, head of research at CryptoQuant, pointed out in an X post that since the hashprice—the average miner revenue per hash—continues to fall after the most recent halving, the market is likely to witness miner capitulation if prices do not rise significantly over the summer.
4 things to know about ‘failed’ $DAVIDO meme coin
Meanwhile, TheRadar earlier reported that Afrobeats superstar David Adeleke, popularly known as Davido, launched his own meme coin.
However, the euphoria didn’t last long as the coin failed spectacularly for a number of reasons which is not unrelated to Davido offloading 121.88 million $DAVIDO for 2,791 SOL to make $474,400 instantly.
