Crypto Market Dips Below 2 Trillion Insights into the Decline

In the initial days of July 2024, the cryptocurrency markets faced a challenging situation as several leading digital currencies, led by Bitcoin (BTC), experienced a significant and rapid collapse.

The month began with two major shocks. Firstly, approximately $130 billion was wiped out from the market capitalization of the asset class in a single day, followed by a similar loss just hours later within a span of 60 minutes.

This downward trend caused the total cryptocurrency market capitalization to drop below $2 trillion for the first time since late February. As of July 5, the total value of cryptocurrencies stood at $1.96 trillion.

Despite Bitcoin receiving the most attention, the total crypto market capitalization excluding BTC also saw a decline of around $150 billion, dropping from $1.03 trillion on July 1 to $880 billion by press time.

However, there is hope for a potential recovery on July 5. Although the current market cap is lower than its previous highs, it has shown signs of an upward trend after hitting a low of $1.93 trillion.

Bitcoin has been struggling to surpass the $55,000 mark, facing resistance after hovering below that price level for several hours. It remains uncertain whether the current uptrend signifies the end of the decline.

In recent weeks, Bitcoin has fluctuated between key support levels such as $61,000, $60,000, and $57,000 after losing its stability near $67,000. The future trajectory of the coin will likely be influenced by factors such as Mt. Gox repayments and the actions of the German government in selling off Bitcoin.

Despite concerns about potential selling pressure from Bitcoin exchange-traded fund (BTC ETF) investors, expert Peter Schiff believes that most ETF investors are not yet in