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

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

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

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

However, if the wave of panic selling escalates, 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.