The crypto market is at its peak, where many cryptocurrencies have reached new highs, beating the dominance of the bear. More importantly, the price of Bitcoin has doubled in this period, reaching an all-time high of $94,002.87 just a few hours ago. However, today the market is hit by a sharp slowdown instead of a continuous rise, confirming the increasing volatility. While this is part of the industry, many market movements and broader geopolitical situations are to blame.
Why is the crypto market down today?
Although Bitcoin has reached an all-time high, it has already moved away from it, currently trading at $93,000. This happened when traders lost confidence as there was a 2% drop in trading volume, which impacted the entire cryptocurrency market. Global market capitalization returned to $3.08 billion, with a 9% decline in global trading volume, currently at $180.87 billion.
Additionally, the crypto market heatmap depicts all major altcoins in red, signifying a downtrend and change in user sentiments.
1. Bitcoin FOMO and Consolidation
Since the start of the year, the price of Bitcoin has jumped an impressive 118%. Of this total, the 23% increase occurred in the last two weeks, thanks to Donald Trump’s victory in the US elections. Interestingly, the price of BTC started rising even before this as investors were bullish on Trump. With this, it has created several highs in the last two weeks, attracting the attention of all retail and institutional investors and creating a wave of FOMO (Fear of Missing Out). However, with its recent spike, it has activated sellers, creating significant selling pressure on the token and causing the crypto market to decline.
🥳 Bitcoin has officially hit a new all-time high, reaching as high as $93,850 on Coinbase as of this writing. Whale trading and retail FOMO can make short-term price action unpredictable, but long-term indicators for BTC (and therefore crypto) look rather… pic.twitter.com/Ae5qtdU8QN
– Santiment (@santimentfeed) November 19, 2024
2. NVIDIA Wins Report Sending Ripples Through Crypto Market
NVIDIA, the AI chip giant, is set to release its quarterly earnings report later this week, creating some turbulence in financial markets, including crypto. Leading analysts are forecasting earnings of around 87.5% and revenue of $33.13 billion after an 83% rise. Given its current popularity and stock performance, it is likely to come close to expectations. However, many concerns remain about long-term growth prospects, as such extraordinary growth raises doubts about sustainability.
Its role in the AI and gaming industry affects the cryptocurrency market. If the tech giant fails to meet expectations, a massive sell-off in gaming and AI cryptocurrencies could impact market dynamics, which is also causing the current turmoil.
3. Russian nuclear doctrine
Recently, Vladimir Putin’s endorsement of Russia’s nuclear doctrine has stoked fears among the world’s population. According to the latest updates, the doctrine has now implemented provisions to respond with nuclear attacks to the conventional attack of the country carrying nuclear energy. These updates include many concerning points, but most worrying is that they come against the backdrop of Washington’s decision to assist Ukraine with long-range U.S. missiles against Russia. As the crypto market is sensitive to such global events, investors refrain from taking full interest in it.
4. Geopolitical tension in the Middle East
Geopolitical tension persists in the Middle East despite American efforts to civilize the situation. Recent news reports further reveal ongoing attacks between countries like Israel-Lebanon, Israel-Iran, and more. Recently, US envoy Amos Hochstein met with Lebanese officials in Beirut to discuss negotiations between Israel and Hezbollah. Analysts see the possibility of progress in the ceasefire, but there is uncertainty in the matter, which is affecting financial markets.
Will the crypto market restart soon?
Current market conditions are just part of the consolidation that has occurred following its impressive performance over the past several days. Additionally, geopolitical incidents caused the crypto market to plummet after creating short-term volatility. As a result, this is an opportunity to understand the crypto trading market and how such events could halt a successive market rally. However, such consolidation usually does not last long. More importantly, the Fear and Greed Index still indicates an area of extreme greed among investors, which could push them to rebuild a rally in the future. For now, investors are monitoring these key events and developing their approaches to these uncontrolled situations, so it is uncertain when the market might return.
Pooja Khardia
With a deep-rooted passion for reading and five years of experience in content writing, Pooja is now focused on creating trending content in the cryptocurrency market. As a dedicated crypto journalist, Pooja is constantly on the lookout for trending topics and informative statistics to create compelling articles for crypto enthusiasts. Keeping up with the latest trends and advances in the field is an integral part of his daily routine, fueling his commitment to providing timely and insightful coverage.
Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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