Why is Crypto Market Down Today: Solana ETF Delay, WLFI Case to Blame?
The global crypto market is showing signs of weakness again. As of now, the total crypto market cap stands at $3.44 trillion, according to CoinGecko. While it is still holding above a crucial support level of $3.28 trillion, fresh pressure is building. The 24-hour trading volume is at $121 billion, which signals panic moves by both retail and whale investors. Bitcoin dominance is at 60.7%, and Ethereum dominance is at 8.83%.
Why is Crypto Market Down Today? Top Reasons to Consider
Solana ETF Delay & Market Crash: The biggest trigger behind today’s fall is the U.S. SEC’s decision to delay Solana ETF approvals. Both Bitwise and 21Shares had applied for spot Solana ETFs, but the SEC said it needs more time to review the proposals. Their reason? They want to protect investors and stop fraud. This delay has shaken investor trust, especially since similar delays are now affecting Grayscale’s Solana and Litecoin ETFs.
The ETF delay came at a bad time. Solana was gaining attention, and many thought approval would push prices up. Now, this delay is creating doubt, slowing growth, and dragging the whole crypto down. Solana is currently trading at $165.54.
Large-scale liquidations and Whale Sell-off: The industry is also suffering from large-scale liquidations. As per Coinglass data, in the past day, 78,525 traders were wiped out, and total liquidations hit $226.69 million. Ethereum had the most losses at $78.08 million, followed by Bitcoin at $60.48 million, and Solana at $7.94 million. Even popular tokens like AAVE, Moodeng, and Fartcoin saw liquidations.
Source: Coinglass
One major reason for panic is a large whale selling 7,000 ETH (worth $16.88 million) at a loss. This whale had earlier withdrawn over 13,000 ETH from Binance when ETH was trading at $3,622, according to Lookonchain. With ETH now much lower, this sell-off shows how even big investors are losing faith.
WLFI Founders Face Legal Trouble: Another issue pulling down investor confidence is the lawsuit involving WLFI co-founder Chase Herro. He and Zak Folkman are being sued over an unresolved $2.5 million hack at Dough Finance. Even though WLFI recently invested $3 million in EOS, they haven’t returned the lost funds. This lack of accountability is damaging trust in new projects.
On top of all this, Moody’s downgraded the U.S. economy. The Dow Jones dropped 332.9 points, the S&P 500 fell by 49 points, and the Nasdaq lost 197.1 points. Since crypto usually follows stock trends, this news made prices fall too.
Will Crypto Market Rise Again?
Investor emotions are shifting fast. The Fear and Greed Index currently shows “Greed” at 71, slightly down from 74 yesterday. A month ago, the index was at 37, showing fear. This recent dip in greed hints that people are becoming more careful.
Several key events this week could affect the crypto market further:
Wednesday: U.S. Crude Oil Inventory report
Thursday: S&P Global Manufacturing PMI + April Home Sales data
Friday: April New Home Sales
All Week: 14 speeches from U.S. Fed officials
These updates may shake the sector, especially if they hint at inflation or interest rate hikes.
Final Take
The crypto market is currently going through a tough phase. From ETF delays to big whale losses, liquidations, and scandals, everything is hurting investor confidence. The Moody’s downgrade has added pressure by weakening overall financial sentiment. While the market is still above the key $3.28 trillion level, its future depends on upcoming economic events and how traders react. For now, caution seems to be the dominant feeling.
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