Bitcoin Leads Global Crypto Market in Significant Downtrend

Bitcoin, the largest cryptocurrency by market cap has witnessed a significant decline in its value in the last 24 hours, trading below the $66k mark. Consequently, the global crypto market has followed this downtrend as the majority of the coins are trading in the red zone.

The drop in market value reflects investors’ mixed sentiment as demonstrated in the crypto fear and greed index. The value points at 55, signifying a neutral stance among market participants. While investors are hopeful for a potential price rally soon, the overall view does not look promising as top projects continue to slip.

General Crypto Market Experiences Decline

According to data from CoinMarketCap, the general crypto market cap has dropped by 1.63% over the last day, resting at $2.35 trillion. However, the trading volume across the market has surged by 60.85% to $92.7 billion, signifying increased activity. Notably, the volume of stablecoins takes up more than 90% of the total volume.

At the time of writing, Bitcoin (BTC) the flagship cryptocurrency, has declined by 1.2% to $65,246 in the last 24 hours. Additionally, the BTC trading volume within the recorded time has increased by 82.16% to $35.08 billion.

This development also casts a shadow on the altcoin market. At the forefront, Ethereum (ETH), the second-largest cryptocurrency by market cap, has dropped by 3.34% in the last 24 hours, trading at $3,404. Ethereum also experienced a rise in its trading activities over the last day by 34.66% to $19.1 billion.

Other top altcoins like Binance Coin (BNB) and Solana (SOL) have lost 2.44% and 4.74% of their value within the last day. At press time, BNB is trading at $583.33, while SOL is changing hands at $136.

Toncoin (TON) has dropped by 5.23% to $7.19. Meanwhile, XRP is the only coin in the top ten to have traded in green. XRP has experienced marginal growth of 0.16% trading very close to $0.5 at $0.4988.

On the memecoin market, Dogecoin (DOGE) and Shiba Inu (SHIB) have plummeted by a significant 10.56% and 11.37% respectively. Also, the total memecoin market cap has crashed by 10.96% to $45.6 billion.

Can Bitcoin Price Bounce Back?

As a result of the global steady downtrend, the total crypto market volume has lost over $45 billion in just one day. Bitcoin already has a critical support level at $64,883, a price slightly below its current price of $65k.

If Bitcoin loses this support level, it could trigger a further downward trend, creating panic that will lead to extended loss. However, if the price rebounds from this level, it could initiate a rally, pushing the price of the coin to establish a new support level at $66,000.