The crypto market was in red in the past 24 hours led by Solana (SOL), Cardano. (ADA), and Polkadot (DOT). The crypto bullish momentum that was recorded at the beginning of this year is gradually decreasing despite the notable heightened on-chain activity.
According to the latest market data, the total crypto market cap dropped by about 1 percent in the past 24 hours to about $1.67 trillion as of this report. Similarly, Bitcoin’s open interest (OI) has dropped in tandem with underlying prices in the past week.
Top Reasons Crypto Market Dropped
Spot ETF Hypes Wanes
With a week down since the US SEC approved several spot Bitcoin ETFs, the hype is gradually disappearing from the crypto space. More crypto investors are preparing for the impact of the upcoming halving in April this year. Consequently, short-term holders and miners have been readjusting their portfolios accordingly following an impressive performance in the prior few months.
Regulatory Uncertainties in the United States
On Wednesday, New York District Judge, Katherine Polk Failla failed to hint at the possible outcome regarding the SEC vs Coinbase Global litigations. Despite both parties agreeing that crypto assets are not securities, the SEC attorneys disagreed with Coinbase lawyers led by William Savitt on the crypto transaction being investment contracts. Meanwhile, Judge Failla is expected to issue a ruling in the coming weeks since the U.S. Congress has failed to enact clear crypto regulatory frameworks.
Crypto Whales Selling Pressure
The cryptocurrency market has experienced heightened on-chain activity in the past few days. According to on-chain data analysis, more large transactions have been moving from different wallet addresses to various exchanges led by Coinbase and Binance.
Additionally, data analysis provided by market intelligence platform Santiment shows that most of the Bitcoin, Ethereum, and XRP’s total supply is in profit, which often leads to high chances of correction.
