The total market capitalization of cryptocurrencies and Bitcoin (BTC) has experienced a significant decline today. Bitcoin dropped to below the support level of $105,000 during its daily trading lows. This decline is attributed to China imposing a new ban even on merely owning cryptocurrencies.

The Optimism (OP) token also fell by 9.3%, leading the losses among alternative coins in this context.

The total market capitalization of cryptocurrencies has decreased by $61 billion in the past 24 hours, reaching $3.30 trillion. This drop has broken the key support level at $3.31 trillion, indicating increased volatility in the short term.

This decline follows China's renewal of its restrictions on owning cryptocurrencies, exacerbating previous constraints on mining and trading. Despite these selling pressures, it is expected that the pace of the decline will weaken soon, potentially giving the market capitalization a chance to regain the support level at $3.31 trillion.

However, if the wave of selling escalates due to panic, it could lead to mass liquidations, which may push the market capitalization of cryptocurrencies down towards the level of $3.21 trillion, increasing the risks faced by investors.