Crypto Market Experiences Decline Amidst Major News Today

The overall cryptocurrency market capitalization (TOTAL) and Bitcoin (BTC) have shown minimal change in the last 24 hours. Similarly, altcoins experienced a slightly negative day, with SEI being the most affected, dropping 9%.

Today’s headlines include:

• US Presidential Candidate Donald Trump has launched his new cryptocurrency endeavor, “World Liberty Financial.” This DeFi initiative will see 63% of the native token WLFI offered to the public, while 17% is earmarked for user rewards and 20% for the team.
• MicroStrategy is looking to raise $700 million through a private placement of convertible senior notes, intending to use $500 million to pay off existing debt and to acquire more Bitcoin. Any leftover funds will be allocated for general corporate activities.

The Crypto Market Simmers Down

The total cryptocurrency market cap has remained stable over the previous 24 hours, showing neither significant gains nor losses. The TOTAL index is presently trading below the $2 trillion mark, which it breached on Monday.

The upcoming Federal Open Market Committee (FOMC) decision on interest rate cuts is a critical factor affecting the market. If traders are disappointed, TOTAL may remain below the $2 trillion threshold and could decline to $1.93 trillion.

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Conversely, a favorable market reaction to possible rate cuts could drive TOTAL back over the $2 trillion mark. This rebound would likely bolster investor sentiment and lead to increased confidence and investments within the cryptocurrency sector.

Bitcoin Sees an Opportunity to Bounce Back

Currently, Bitcoin is trading at $58,096, reflecting a 1.55% decrease over the past 24 hours. The cryptocurrency is looking to recover from a pivotal support level at $57,270. Investors are keenly observing if BTC can sustain this support, as it is essential to preventing further declines.

A lack of significant on-chain activity suggests that Bitcoin may experience minor price fluctuations in the coming days. However, if the support at $57,270 holds, BTC could bounce back and potentially attempt to surpass the $60,000 mark, rekindling bullish sentiment in the market.

Read more: Bitcoin Halving History: All You Need To Know

On the other hand, if Bitcoin falls below the $57,270 support level, the negative trend could strengthen. This could result in Bitcoin testing the psychological support level of $55,000, undermining the optimism among investors.

SEI Made The Cut

SEI is currently the day’s worst performer, having dropped 9.5% in the last 24 hours and is now trading at $0.270. This altcoin is approaching a critical support test at $0.258.

Despite the recent decline, SEI has managed to hold above the $0.258 support level for the past five weeks. This consistency may provide the cryptocurrency with an opportunity to recover and regain some lost ground. Continued stability would likely alleviate bearish sentiment in the short term.

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However, if SEI fails to hold the vital $0.258 support, a notable decline could ensue. The altcoin might slide down to $0.226, reversing recent gains and negating the bullish-neutral outlook. Such a setback could intensify losses and dampen investor sentiment regarding SEI.