- Crypto market cap fell 3.2% to $1.2 trillion in the past 24 hours as Binance halted BTC withdrawals.
- The exchange’s action followed massive network congestion for bitcoin as the fee hiked the token along with inscription and ordinal.
- Meanwhile, Bitcoin (BTC) slashed its market cap to $540 billion en route to 45% market dominance.
The total cryptocurrency market cap has fallen by 3.2% to $1.2 trillion over the past 24 hours as of writing. Top two digital assets by market capitalization bitcoin (btc) and Ethereum (ETH) are both down over 3% over the same period and down -5.4% and -2.2% respectively over the last seven days.
As a result, BTC is trading below $28,000, while Ether is trading near $1,850 amid widespread selling pressure for the crypto.
While most big cap tokens are down around 3 to 6%, Pepe (PEPE) and Sui (SUI) are the biggest losers among the top 100 coins with around -12% performance in the last 24 hours.
Why the crypto market is down today – look at bitcoin
Traditional markets saw some downside as traders took fresh bets on regional banks after last week’s rally. The outlook for crypto is not the same and bitcoin is virtually halted as many US banks shares Thrown away.
But why is crypto market cap down? Notably, the crypto remains volatile and BTC is finding it difficult to break higher after its rejection near $30,000. However, there could be panic selling behind this latest down leg, especially with data showing an outflow of BTC from the Binance exchange.
Breaking: #binance Exodus data confirms the largest exodus in its history, more than 162,000 $BTC has left the exchange, valued at over $4.6 billion.
Are whales/insiders jumping ship? pic.twitter.com/QSXYAEvHkt
— WhaleWire (@WhaleWire) May 7, 2023
Over the weekend, one of the major crypto news headlines related binance Suspending bitcoin transactions because the network experienced massive congestion. This is a scenario that has seen a significant increase in transaction fees.
For example, on Sunday BTC block 788695 had a transaction fee of 6.7 BTC, which was higher than the block subsidy of 6.25 BTC. On-chain data shows that bitcoin experienced a surge in blockspace demand, leading to higher transaction fees.
According to on-chain analytics platform Glassnode, Blockspace’s high demand is being driven by the BRC-20 token. Tokens using Inscription and Ordinances showed as much as 9% profit stack (stx) Amidst the decline in BTC price.
#bitcoin BRC-20 is experiencing extremely high demand for a token-powered blockspace, using text-based inscriptions and ordinances.
This is a revenue boost for the miners, as the average fee paid per block reaches 2.905 $BTCnear previous bull peaks
https://t.co/DyVjODagG9 pic.twitter.com/8ZV0i4DNzm
— Glassnode (@glassnode) May 8, 2023
Thus, the bitcoin market cap has dropped to $540 billion today, which represents about 45% of market dominance. Ethereumcurrently has a market dominance of around 18.6%
bitcoin price prediction
The announcement that Binance had suspended BTC withdrawals – on two occasions – pushed some traders into action. But crypto market cap could recoup some of the losses ahead of an important week brimming with economic news. Binance is also reportedly eyeing Bitcoin Lightning Network transactions.
Crypto analyst Michael van de Poppe highlights bitcoin price levels at $27.4k or $26.8k could provide bounce zones.
,Earlier mentioned $29.2K was a key level for #Bitcoin to break. We had bounce towards it, but no break. Also some FUD regarding #Binance doesn’t help. Looking at $27.4K or $26.8K for Potential Longs Towards the CME Gap at $29.6K“analyst” Tweeted on Monday morning.