The total cryptocurrency market cap and Bitcoin were hit in the past 24 hours, surprising the market despite the SEC announcing 'Project Crypto'. Altcoins performed similarly, with SPX6900 (SPX) dropping 8.7%.
In today's news:
Paul Atkins, chairman of the SEC, has launched 'Project Crypto', an initiative aimed at modernizing U.S. market blockchain-integrated securities regulations. The plan includes interpretive guidance, exemptions, and safe harbors to facilitate Web3 innovation, based on President Trump's GENIUS Act and the PWG report.
On the 10th anniversary of Ethereum, developer Justin Drake warned that quantum computing could threaten ETH and called for a shift to hash-based cryptography to protect the network. He emphasized the capacity of quantum computers to break current cryptographic methods, posing a significant challenge to the future security of Ethereum.
Cryptocurrency market decline
The total cryptocurrency market cap has decreased by $66 billion, currently at $3.74 trillion. Despite the recent drop, the market remains above the critical support level of $3.73 trillion. This support may help stabilize the market, making it possible to rebound to the resistance level of $3.81 trillion.
Although the SEC's announcement of 'Project Crypto' is seen as a positive development, the market's reaction has not met expectations. This indicates ongoing uncertainty in the cryptocurrency sector. Nevertheless, the market may still maintain a position above $3.73 trillion, potentially leading to a gradual recovery in the coming days.
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Total cryptocurrency market cap analysis. Source: TradingView
If bearish sentiment continues to dominate, there is a risk of further declines in the total cryptocurrency market cap. Falling below the $3.73 trillion support level could push the market to test $3.61 trillion.
Bitcoin breaks out of consolidation
The current price of Bitcoin is $116,021, having fallen after breaking out of the two-week consolidation range between $117,261 and $120,000. The current price drop indicates market uncertainty, as Bitcoin has failed to hold above recent support levels, leaving room for potential further declines.
Given the volatility of market conditions, Bitcoin is currently hovering around the support level of $115,000. If it holds this level, it could help stabilize prices in the short term. However, if Bitcoin fails to maintain this support level, it could drop to $111,187, further extending the downward trend observed today.
Bitcoin price analysis
If Bitcoin regains bullish momentum and breaks above $117,261, the bearish outlook may be invalidated. Successfully reclaiming this support level would indicate that Bitcoin could continue to consolidate, potentially pushing the price back to the upper limit of $120,000, depending on market conditions.
SPX6900 falls to a two-week low
SPX has become the worst-performing altcoin of the day, falling 24% in the past 8.7 hours. The current price of meme coins is $1.66, and their significant drop reflects market uncertainty. If this bearish trend continues, SPX may struggle to regain previous levels in the coming days.
If market conditions worsen, SPX is expected to test the support level of $1.55. Failing to hold this level could lead to further declines, potentially pushing altcoins down to $1.42. This drop would indicate that bearish momentum continues, making the recovery of SPX more challenging in the near future.
If market conditions improve and investor sentiment changes, SPX may recover the support level of $1.74. This would provide the necessary momentum for a potential rise to $2.00. A breakout above this level would invalidate the bearish outlook, signaling a possible trend reversal for meme coins.