The total crypto market cap (TOTAL) has dropped to a multi-week low over the last 24 hours. Bitcoin’s (BTC) price, in accordance with the broader market cues, slipped to $56,650, while Bittensor (TAO) led the altcoins by noting an 11.7% decline on Tuesday.
In the news today:
- The US Justice Department has subpoenaed Nvidia and other companies amid concerns that the firm may be violating antitrust laws by restricting buyers from switching suppliers and penalizing those who don’t exclusively use its AI chips. This development had an impact on the crypto sector, as the market cap of AI tokens fell by 7% to $20.8 billion.
- Spot Bitcoin ETFs registered the highest single-day outflows in more than three months. All BTC ETFs collectively registered $287 million worth of outflows on Tuesday, impacting the crypto market.
The Crypto Market’s Slump Continues
The total crypto market cap dropped considerably over the last 24 hours without even getting a shot at recovery. As the pessimism among institutions grew, they moved to sell, evident in the aforementioned outflows.
The sell-off resulted in the total value of all cryptocurrencies declining by $89 billion. At the moment, TOTAL stands at $1.94 trillion, holding above the support of $1.93 trillion.
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Losing this level could lead to the total crypto market cap falling below $1.90 trillion. The next crucial support would then be established at $1.86 trillion.
Bitcoin’s Price Struggles to Find Support
Over the last few days, Bitcoin’s price hovered around the support level of $58,200. Finally, it fell below it as spot BTC ETFs recorded outflows worth $287 million in the last 24 hours. Currently, at $56,650, BTC has already slipped below the support of $55,883 during the intra-day low today.
The ETF sell-off killed the chance of BTC making it back to $60,000, and by the looks of it, $55,883 is next for the king crypto. A bounce back from this level to the resistance of $58,200 is likely.
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If, following a bounce back, the breach of $58,200 fails, BTC could consolidate above $55,883.
Bittensor Takes a Hit
Among the altcoins, TAO led the drawdown brigade as the altcoin fell by 11.7% in the last 24 hours. This resulted in Bittensor’s native token losing the support of $263 and dropping to trade at $252 at the time of writing.
While the altcoin is showing some semblance of recovery at the moment with a 2% increase, it would need a lot more to reclaim $263 as support. Only then can TAO continue with its attempt to recover the 38% losses from July’s end completely.
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However, in the event that TAO fails to reclaim $263, the next outcome could be a drawdown to $240. Indeed, a drawdown is possible since a similar outcome has been noted in the past, which could invalidate the bullish outlook.
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