Bitcoin fell below $63,000 as markets fell

The cryptocurrency market is experiencing a significant correction today, with Bitcoin (BTC) below the $63,000 mark and Ethereum (ETH) falling 4%.

The value of the global crypto market has decreased by 3.7% in the last 24 hours, it is currently at 2.29 trillion dollars.

In the year As of June 24, 2024, Bitcoin is trading at around $62,636, down 2.7% on the day and down 5.82% over the past week, according to CoinMarketCap data. This marks a significant pullback from the cryptocurrency's recent high, which was headed above $65,000.

Ethereum, the second largest by market capitalization, was hit hard by the market crash.

ETH is currently trading at $3,374, down nearly 4% in the last 24 hours and down 6.06% for the week. This comes despite news of significant long-term bond holdings amid recent price declines.

The broader altcoin market is also seeing red, with major cryptocurrencies such as Polkadot (DOT), Solana (SOL) and Ripple (XRP) down 2.86% to 7.17% on the day. Meme coins like Shiba Inu (SHIB) are particularly volatile, with SHIB down nearly 6% in the last 24 hours and down 17% in the week.

While cryptocurrency prices have historically seemed less influenced by macroeconomic conditions compared to traditional financial assets, the current correction may be influenced by broader economic uncertainty. Regulatory concerns, potential policy changes and the environmental impact of crypto mining all weigh on market sentiment.

For example, last week the US Securities and Exchange Commission (SEC) closed its investigation into Ethereum without charging that ETH sales were securities transactions. While this is a positive development for Ethereum, it is unclear what this means for the rest of the crypto market as other projects such as Solana and Polygon face ongoing regulatory scrutiny.

In addition, the recently implemented Markets in Crypto-Assets (MiCA) Regulation in the European Union is already having an impact on the industry. Binance, the world's largest cryptocurrency exchange, announced plans to limit some stablecoins to comply with the new EU crypto regulations.

The current macro environment, with high inflation and interest rates, may also cause investors to re-evaluate risky assets such as cryptocurrencies. Risks of economic instability and the impact of cryptocurrencies on areas such as inflation, exchange rates and monetary policy can affect market sentiment.

Despite the current market correction, there are some positive developments on the horizon for the crypto space. SEC Chairman Gary Gensler recently indicated that Ethereum ETF approvals are planned for this summer, which could bring more institutional investment to the Ethereum ecosystem.

Moreover, the Bitcoin options market is showing a bias towards $100,000 calls, which suggests that some investors are bullish on BTC's long-term prospects despite short-term price weakness. However, a recent report from McKinsey suggests that mass adoption of tokenized real-world assets (RWAs) may still be a long way off, with the consulting firm projecting only $2 trillion in 2030 in their baseline scenario.

As the crypto market navigates this latest correction, investors will be closely watching key support levels for Bitcoin and Ethereum. For BTC, the $60,000 psychological level remains an important support area, while ETH seeks to hold above the $3,000 mark.

Edited by Stacy Elliott.