Why Is The Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) both fell victim to Mt. Gox’s $5 billion move. The resulting bearishness also impacted the altcoins, with Lido DAO (LDO) witnessing a sharp decline.

In the news today:-

• Mt. Gox, one of the world’s biggest crypto exchanges, went bankrupt a decade ago. Today, it made a move. This was the first transaction in five years, as about 75,000 BTC worth $5 billion changed addresses.
  
• Kaiko Research, in a report, predicted that Grayscale Ethereum Trust (ETHE) could follow in its Bitcoin counterpart GBTC’s footsteps. The report noted that ETHE could observe daily average outflows of $110 million.

Mt. Gox Sends Ripples Across the Crypto Market

The total crypto market cap marked a red candlestick on the charts today as the Mt. Gox news stirred bearishness among investors. The combined value of all cryptocurrencies fell by $45 billion, but TOTAL is still holding at $2.48 trillion, around the key support of $2.50 trillion.

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Crypto Market Cap Analysis. Source: TradingView

If this depreciating bullishness intensifies, it might cause the valuation of the crypto market to dip further. This could send a TOTAL of $2.40 trillion.

Bitcoin’s Price Reacts Similarly

Given that Mt. Gox’s $5 billion BTC move was today’s market mover, Bitcoin’s price was bound to take a hit. The crypto asset fell by a little over 2%, which resulted in BTC losing support at $68,500. This is a critical support level; cementing it as a support floor is essential for noting recovery.

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Bitcoin Price Analysis. Source: TradingView

While further drawdown is unexpected, unprecedented bearish market conditions could pull BTC to $66,000. However, reclaiming $68,500 as support could reignite optimism.

Lido DAO Fails a Breach

Lido DAO’s price rose considerably in the second half of May, but the last 24 hours differed. As LDO inched close to breaching the critical resistance of $2.6, the market’s winds shifted from bullish to bearish. As a result, Lido DAO failed the breach and slid to $2.4.

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Lido DAO Price Analysis. Source: TradingView

To attempt a breach again, investors and the market must push. If this does not happen, LDO could drop to $2.2.

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