The cryptocurrency market experienced a sharp selloff over the past 24 hours, with total market capitalization declining by $120 billion. The drop brought the combined value of all digital assets to $3.04 trillion.
Bitcoin fell 4.4% to trade at $90,098 as of Tuesday morning. The decline pushed the largest cryptocurrency down from recent highs but kept it above the critical $89,800 support level.
The broader market weakness triggered widespread liquidations across crypto exchanges. Soon token emerged as the day’s worst performer with a 34% decline to $1.27.
The total crypto market cap now approaches the psychological $3 trillion threshold. Trading data shows the metric sitting just above $3.04 trillion after the recent decline.
If selling continues, analysts warn the market could test $2.93 trillion. Such a move might trigger additional panic selling among traders.
Bitcoin’s price action remains closely watched by market participants. The cryptocurrency has maintained support at $89,800 despite the broader market turbulence.
Technical analysis suggests Bitcoin may have found its projected bottom at current levels. The price target was identified by analysts two weeks before the current decline.
Despite market volatility, protocol development continues in the decentralized finance sector. 1inch unveiled its new Aqua liquidity protocol on Tuesday.
The upgrade addresses capital fragmentation issues in DeFi markets. Aqua allows multiple trading strategies to share the same liquidity pools without compromising self-custody features.
This represents one of the largest architectural changes for 1inch since its aggregation engine launch. The protocol has become a leading routing layer for decentralized exchanges.
Meanwhile, DappRadar announced it would shut down permanently after six years of operation. The analytics platform cited financial challenges as the reason for closure.
DappRadar launched in 2018 and became a widely-used resource for tracking decentralized application metrics. The company stated that issues related to its DAO and RADAR token would be handled separately.
Soon token’s 34% decline reflects heightened risk aversion toward smaller altcoins. The token trades at $1.27, below the $1.39 resistance level but above $1.04 support.
Market observers note that spot Bitcoin ETF outflows contributed to selling pressure. The combination of liquidations and ETF redemptions accelerated the market decline over the past day.
The post Why Is The Crypto Market Down Today? appeared first on Blockonomi.
