The cryptocurrency market experienced a notable downturn, with total market capitalization dipping below the $3 trillion mark after a 3.5% drop in the past 24 hours. This correction comes amid fresh speculation that President Donald Trump may lower tariffs on China—a move that has prompted investors to rotate funds back into traditional U.S. equities.
Bitcoin Faces $95K Wall Despite Strong ETF Inflows
Bitcoin attempted to break past the $95,000 resistance level but was rejected, now trading around $93,582. This comes even as U.S.-based Bitcoin ETFs saw a record-breaking $917 million in net inflows on Wednesday, pushing total inflows to over $1.4 billion in just three days. However, without new catalysts, analysts believe BTC may struggle to maintain upward momentum, especially if stock markets continue to rebound.
Altcoins Diverge: SUI and Trump Token Stand Out
In contrast to the broader market, a few altcoins showed strength:
SUI posted a modest gain of 3%, trading at approximately $3.28.
The Official Trump Token surged an impressive 31.7%, reaching $12.39 in value.
Despite these gains, most altcoins have followed Bitcoin's lead in declining, as investors seek refuge in more stable assets.
Stablecoin Demand Rises
Stablecoins like USDT and USDC maintained their pegs, trading at $1.00 and $0.9999, respectively. The growing volume in stablecoins suggests a cautious market sentiment, with many traders opting for safety amid economic uncertainty.
Key Headlines Impacting Sentiment
Crypto Scams Surge: The FBI reports that elderly Americans lost $2.8 billion to crypto-related fraud in 2024, contributing to a total of $9.3 billion in scam losses.
Web3 Investment Activity: Venture capital firm RockawayX has launched a $125 million fund targeting startups building on Solana, signaling continued institutional interest in Web3.
Hack Recovery: ZKsync successfully recovered $5 million in stolen tokens after the attacker accepted a 10% bounty deal, showcasing the growing effectiveness of blockchain-based security measures.
As global economic dynamics shift and traditional financial markets regain attention, the crypto sector appears to be entering a cautious phase. However, select tokens and sectors continue to draw investment, keeping the space dynamic and full of opportunity.
