As the US puts pressure on the crypto industry, the cryptocurrency market cap is once again below $1 trillion, restoring some of the big highs in January when Bitcoin surged 40% taking other currencies with it.
With the market so bearish, even the second richest man in the world couldn’t get the bulls excited. In fact, in a tweet about Dogecoin, currently with 7.1 million views, Elon Musk managed to make DOGE rise 6% in 10 minutes, but the gains were reversed shortly after.
— Elon Musk sits next to Fox News owner Rupert Murdoch at the SuperBowl. What are they talking about?
— dogecoinanswered Elon Musk himself.
dogecoin
— Elon Musk (@elonmusk) February 13, 2023
As shown in the image below, DOGE spiked in volume and price immediately after Musk’s tweet, but even that wasn’t enough to get the market going. In other words, Dogecoin had another “chicken flight” and failed to sustain its rally.
Cryptocurrency Market Below $1 Trillion
With Bitcoin plunging and trading below $21,500, other cryptocurrencies are following suit. Binance Coin (BNB), the fourth largest in the market, is down 10.9% daily after US regulators banned the issuance of the stablecoin Binance USD (BUSD).
Other majors such as Polygon (MATIC), Lido DAO (LDO) and The Graph (GRT) are also seeing double-digit percentage losses on Monday.
The main reason for the casualties is the heavy hand of the US government. After fining Kraken last week for cryptocurrency staking, rumors indicate that regulators will go after another giant stablecoin issuer, Circle.
With worried investors, the cryptocurrency market cap has fallen below $1 trillion. Such a range was a major battlefield last month when it took a while for the bulls to break through such resistance.
Another point that influenced the loss of this support was the stablecoins themselves. While they are a haven in times of downturn, USDC alone, for example, has withdrawn $4.7 billion in tokens from the market.
Fall forward more?
According to analysts, Bitcoin’s fall was already marked. While some believe BTC will be able to hold on to $21,000, others point out that the largest cryptocurrency should reach the $18,000 region before an upturn.
Nevertheless, it is worth noting that all pressure from the US government has not been included in the above analyses. That is, now the situation is a little more worrying.
Alternative cryptocurrencies that appreciated more than Bitcoin last month are now facing the opposite scenario. As mentioned at the beginning of this article, there are several that lose double-digit percentages on the daily chart, which can rise in the following days.
Regardless, analyst sentiment for Bitcoin’s short and long term is still bullish. Therefore, such drops can be interesting to contribute.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
