$70B exits crypto market on day as Bitcoin fails to sustain bullish momentum
The cryptocurrency market has remained primarily muted, recording capital outflows eroding gains in recent weeks.
Accordingly, the selling pressure is witnessing assets such as Bitcoin (BTC), which has corrected as it faces a battle to keep its price above $20,000.
In fact, as of August 19, the total global crypto market capitalization was $1.05 trillion, down $70 billion in the past 24 hours from $1.12 trillion just a day earlier, according to CoinMarketCap data .
Cryptocurrency trading expert Michaël van de Poppe has acknowledged that the current market cap facing rejection is at a critical resistance level. In a chirping published on August 19, Poppe noted that the market is likely to rise if capital breaks above $1.2 trillion.
“Total market capitalization is still the chart to watch. Rejected at a key resistance zone and breakdown of the rising wedge. Holding above 200-week MA and likely to continue to do so. Break above $1.2T and it’s a party,” Poppe said.
Bitcoin fails to break past $25,000
In particular, Bitcoin has been on a short-term rally trying to maintain gains above $25,000. However, the asset has lost momentum, plunging nearly 7% in 24 hours. At press time, the flagship cryptocurrency was trading at $21,800.
Overall, the market has declined in response to the latest rate hike by the Federal Reserve in an effort to suppress skyrocketing inflation. The Fed’s decision was considered decisive for the next course of the market.
Hopes of a crypto rally dented
The sell-off has dampened hopes of a potential market rally in the second half of the year after a significant correction in the first six months of 2022.
The crypto space in particular was plagued by bankruptcies and liquidity problems alongside failed projects. The sector has since lost around $2 trillion in capitalization since the November 2021 bull run.
Interestingly, the market is also losing momentum from the Ethereum (ETH) rally that was crucial in driving the entire sector. This comes ahead of the Merge upgrade which aims to transfer the asset to a Proof-of-Stake (PoS) protocol.
A section of analysts believe that if the merger is successful, the sector could experience a buy rumored to sell news-type event, judging by the recent gains in the second-ranked crypto.
Furthermore, after previously leading the market in gains, Ethereum has corrected by nearly 9% in seven days to trade at $1,730 at press time.
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