Memecoins are braving the trend to post impressive gains amid the correction.
A day after the US Independence Day celebrations, the crypto market is experiencing a mild pullback, dampening the enthusiasm of bulls. BTC, ETH, XRP, and ADA have posted lukewarm numbers as the global cryptocurrency market capitalization sheds nearly $100 billion in a day.
Crypto Markets Record Underwhelming Numbers
Cryptocurrency prices have failed to match the enthusiasm of the July 4 celebrations in the US, falling by nearly 1% the day after. According to CoinMarketCap data, the cryptocurrency market has lost nearly $1oo billion in what experts are terming a “mild correction.”
Bitcoin, the largest cryptocurrency, fell to a daily low of $107,296 from a high of $108,381, dousing enthusiasm for a weekend run to set a new all-time high. Bitcoin is only 3.49% away from equalling its all-time high of $111,970, but the odds of a new peak have slumped following today’s crypto market slump.
Ethereum, mirroring Bitcoin’s movement, has also posted a similar underwhelming price performance. The second-largest cryptocurrency is trading at $2,495, falling from a daily peak of $2,529 and showing little signs of a recovery.
Other altcoins are recording lackluster price movements with Cardano, Solana, XRP, and Dogecoin in the red. Despite the decline, some memecoins are in the green with BONK surging by nearly 9% over the last day, leading to other smaller-cap coins.
Several reasons are behind the broader crypto market decline today, but the biggest needle mover is a 3.6 billion crypto options expiry. Nearly $3 billion in Bitcoin and another $600 million in ETH contributed to the selloffs recorded in the market.
The on-chain activity of dormant whales waking up has stoked fears of a mass selloff, triggering a mass sale. Recently, a Satoshi-era Bitcoin whale moved 20,000 BTC, continuing a streak of dormant whale accounts resurfacing after 10+ years. Another benign reason appears to be post-holiday profit-taking by traders after a strong end to June.
Another reason behind the decline is the fading hopes of a July Fed rate cut following the release of strong US job data. Previously, the odds for a Fed rate cut in July spiked to 23% amid calls by the FHFA for a Senate investigation of Jerome Powell.
