Why Crypto Is Down Today? Will Crypto Go Back Up

Why is The Crypto Market Down Today? Will Crypto Recover

Cryptocurrency Market Update: Mixed Sentiments Dominate Amid Market Decline

Global Market Cap Drops by 0.65%

The cryptocurrency market witnessed mixed sentiments as the global market capitalization decreased by 0.65%, settling at $3.29 trillion. Additionally, trading volumes saw a notable decline, dropping 9.04% over the past 24 hours to reach $161.27 billion.

Fear & Greed Index Reflects "Greed" Sentiment

The Fear & Greed Index currently stands at 69, signaling "Greed," a positive but cautious market sentiment. This is a slight decline from last month’s 78, which indicated "Extreme Greed." While greed levels often suggest bullish trends, the decline in sentiment could pave the way for short-term corrections in the market.

High Volatility Leads to $478.30 Million Liquidation

In the past 24 hours, the cryptocurrency market experienced significant volatility, leading to total liquidations amounting to $478.30 million. A breakdown of these figures reveals:

- $338.61 million in long positions liquidated.

- $139.69 million in short positions liquidated.

A total of 164,937 traders were impacted, highlighting the intense price fluctuations. The largest single liquidation order was executed on OKX, involving the BTC-USDT-SWAP pair, with a value of $15.30 million.

US DOJ Approves Sale of Silk Road Bitcoin Holdings

The US Department of Justice (DOJ) recently approved the sale of 69,370 Bitcoins seized from the Silk Road darknet. The DOJ cited Bitcoin’s price volatility as the key reason for the liquidation approval. Following this decision, the balance in the US government’s wallet dropped to zero, down from $6.7 billion on January 8, as reported by Arkham Intelligence.

DXY Strength and Treasury Yields Apply Pressure on Crypto

The DXY (Dollar Index), which began the week with a 0.92% decline, reversed course and surged to 109.37. This shift reflects market concerns over inflation and anticipated economic policies under President-elect Donald Trump, which aim to boost growth but may increase long-term debt.

At the same time, U.S. Treasury yields surged, with the 10-year note climbing to 4.7% and the 30-year note reaching 4.93%. This strengthening of the dollar has added selling pressure to Bitcoin and other cryptocurrencies.

Market Technical Analysis: Symmetrical Triangle Signals Volatility

The daily chart for the crypto market cap shows a symmetrical triangle pattern, suggesting potential upcoming volatility. The market faced rejection at the upper resistance and is now searching for support near the $3.15T to $3.10T range. If the $3.10T level holds, it could spark a sharp rally.

For Bitcoin, maintaining the critical support level of $90,000 is crucial for the next upward move. Using wave analysis, the current consolidation phase appears to be the fourth wave, potentially paving the way for a rally toward the $126,000–$128,000 range.

Will the Market Recover?

The cryptocurrency market remains poised for potential recovery, contingent on key support levels holding firm. Market participants are closely monitoring the $3.10T total market cap level and Bitcoin's $90,000 support for indications of the next significant move.