The crypto market is currently experiencing a correction, with a loss of almost 2% of its capitalization in the last 24 hours, bringing it down to $2.51 trillion. Bitcoin, however, is showing more resilience compared to the overall market, with a slight pullback of only 0.7% to $67.6K. On the other hand, many other top coins such as Ethereum, BNB, and Solana are facing deeper drawdowns. The pressure is also being felt by meme coins, indicating a broader market trend.
The indirect pressure on the crypto market can be attributed to the stock market, as there are currently no significant drivers within the crypto space. Bitcoin, in particular, seems to be moving within a pullback scenario from the upper end of its range. In the most bearish scenario, the price may roll back to $60K, while a more optimistic outlook suggests a decline to the $65K area, where the 50-day moving average is located.
Glassnode has reported signs of a recovery in buyer interest in Bitcoin, with long-term BTC holders, those holding the asset for more than 155 days, resuming accumulation for the first time since December 2023 after a period of selling.
In terms of recent news developments, BlackRock’s spot bitcoin ETF has outperformed Grayscale’s BTC-ETF (GBTC) in assets under management. The fund managed by the Wall Street investment giant has reached $19.68 billion, with total net inflows into US spot bitcoin-ETFs amounting to $45.14 million. Additionally, the gap in trading volumes between Bitcoin and Ethereum spot markets has narrowed to $1.3 billion, a significant decrease from the $15 billion difference seen in March.
The SEC has withdrawn its lawsuit against mining company Digital Licensing, also known as DEBT Box, and a US federal court has ordered the regulator to pay approximately $1.8 million in case costs. The lawsuit dates back to August 2023 when the SEC accused DEBT Box of fraudulently raising $50 million in cash, as well as undisclosed amounts in BTC and ETH. The court later found that the SEC’s lawyers had misled the court in an attempt to freeze DEBT Box’s funds.
On the adoption front, payment giant Mastercard has announced the pilot launch of its Crypto Credential service for cryptocurrency transfers between users, specifically peer-to-peer transfers. In addition, PayPal, the issuer of PYUSD, has introduced its stablecoin on the Solana network, citing the high speed and low fees of the blockchain as the reason for the choice.
A recent survey by Grayscale revealed that 47% of Americans are now willing to allocate a portion of their investment portfolios to cryptocurrency, marking an increase from 40% at the end of last year. This growing interest in digital assets reflects a broader trend towards mainstream adoption of cryptocurrency as a legitimate investment option.
Overall, the crypto market is currently going through a correction phase, with various factors influencing the market dynamics. While Bitcoin remains a key player in the market, the performance of other top coins and the broader market trend will be essential to watch in the coming days to gauge the direction of the correction and potential recovery.
