Crypto Market Sees $2.16 Trillion Decline Amid External Pressures

The crypto market has seen a significant decline of 2.7% in its capitalization to $2.16 trillion, as external markets continue to be under pressure.

Nervousness in traditional financial markets has intensified due to concerns over AI spending, leading to a downturn in the Nasdaq 100.

The crypto market's decline is not a sign of strength for cryptocurrencies, but rather a short-term reaction to sustained declines in shares and bonds forcing investors to rebalance their portfolios.

Among the top coins, Zcash has fallen by 6.4%, while Near Protocol and Tezos have dropped by 5.3% and 5%, respectively.

BTC has lost 2.9% over the past 24 hours, falling back to $62.8K. It failed to confirm a reversal of the downtrend, as higher highs were not formed, and the price quickly fell back below the 50-day MA, returning to the downtrend channel in place since June.

The proportion of long-term investors selling Bitcoin at a loss has stopped rising, which may be an early sign that the sell-off is coming to an end. The market is forming a bottom, but has not yet received signals for sustained growth, according to Glassnode.