Crypto Market Cap Drops Amidst FTX Developments, BTC and ETH Fluctuate

The global crypto market cap is down by 0.46%, hovering around $2.17 trillion, with an FGI of 42 points for neutral sentiments.

The global crypto market cap declined on Monday evening as two key developments unfolded in the market.

Customers of FTX are now gearing up to receive their funds, with creditors expected to receive their funds or tokens soon as the now-defunct crypto platform rolls out its dues. Once the funds are credited to the holders, they will decide whether to retain them or sell them for a profit.

Meanwhile, Crypto.com has reportedly sued the U.S. SEC after the regulator followed through on its threat to sue it. The crypto exchange has alleged that the agency overstepped its boundaries by regulating the jurisdiction of the crypto industry.

BTC and ETH Fluctuate

Bitcoin tokens slipped 0.63%, but Ethereum tokens rose 0.16% over the past 24 hours. BTC trades at $62,303.01, and ETH trades at $2,443.57. The dip phase could be a chance to accumulate tokens before they surge.

FTX rolling out dues to creditors can go either way—it can put selling pressure on the market or demonstrate optimism among investors. Selling pressure will further cause both flagship tokens to fall.

BTC’s support level has been defined at $60,000. Anything below that mark could lead to a large decline to $55,000. Similarly, ETH has a support level of $2,400. Anything below this mark could potentially take Ether down to $2,150. It remains to be seen if their respective ETFs will show a different picture in terms of net flows.

Meme Coins Trade in Red

Dogecoin and Shiba Inu are observed reacting fiercely to each trend that arises. Both are now down by 0.79% and 0.33%, respectively, in the last 24 hours. DOGE currently trades at $0.1086, and SHIB trades at $0.00001748. The difference between their market caps has been reduced to less than $6 billion. Shiba Inu is declining at a slower rate than Dogecoin.

Trump-themed meme coins are rising on the market. They jumped when Elon Musk took center stage with Donald Trump to show his support for the Republican Candidate. All tokens were up by at least 15% after that. They are currently down as MAGA has shed almost 10.87% of its value, and DONALD has plunged by 1.99%. Nevertheless, the dips come after significant rises.

Other Gainers and Losers

BNB surged 1.57% to become one of the few gainers in a single day. XRP is slightly up by 0.16%, and SOL has struggled with a dip of 0.30% during the same time window. The demand for Tether’s USDT was significantly higher. It could still be up as Chinese investors continue to flock towards their national stock exchange. Investors abandoned risky digital assets in favor of the traditional market, which yielded better results.

PEPE and WIF are down by 3.39% and 4.19%, applicable in the same order. Their values are $0.000009594 and $2.46, respectively. Both remain one of the most preferred meme coins in the segment, except if Trump-themed tokens make a comeback in the days to come. BabyDoge is up by 12.94% for a value of $0.0000000025, making it one of the few meme coins to have fetched profits.

Conclusion

Ongoing dips are more likely an opportunity to accumulate tokens. Recipients of funds from FTX will play a pivotal role in driving the market for a couple of days. Any excessive selling pressure could potentially have a negative impact till the end of this year. This, in turn, could stand in the way of forecasts for the cryptocurrency market.

Values are true at the time of writing this article. Content is not investment advice.