In the past 24 hours, the cryptocurrency market witnessed a 6% drop, bringing its total value down to $2.42 trillion. Solana, experiencing a 9% decline within the same timeframe, marked the final major alternative coin to undergo a market correction following Tuesday’s downturn.
Bitcoin saw a decrease of 5%, dipping to $64.4K, its lowest point in a fortnight and a 13.5% fall from its peak. A closure beneath $65.5K might indicate a trend towards a more substantial decline, aligning with the classic 61.8% retracement level, aiming for a potential bottom near $60K.
Previously, Solana maintained a position over $210, touching peak values not observed since the latter part of 2021, only to succumb to the overarching market’s corrective phase. According to a typical retracement framework, it could see a decrease to around $168. At this juncture, it becomes critical to assess Bitcoin’s market sentiment and the overall risk tolerance to gauge the solidity of this support level.
Ethereum is currently facing downward pressure, retreating to $3300, effectively nullifying its progress since the beginning of March. With Ethereum breaching the 61.8% retracement mark of its ascent from January’s low points, hopes for recovery now hinge on the 50-day average support at $3080 and the psychologically significant $3000 mark, bolstered by prior consolidations.
Investment flows into cryptocurrency funds have surged, with CoinShares reporting an unprecedented influx of $2.916B in the last week, eclipsing the former record of $2.685B from the preceding week, marking the seventh week of notable inflows. Notably, Bitcoin investments soared by $2.896B, while Ethereum and Solana investments dropped by $14M and $2.7M, respectively. Furthermore, funds facilitating Bitcoin shorts saw an increase of $26M.
Crypto.com’s CEO Chris Marszalek commented on the current market trend, likening it to the bullish phase witnessed between December 2020 and January 2021. He described the ongoing correction as a “healthy” adjustment that mitigates leverage within the system.
Rekt Capital highlighted a potential “danger zone” looming with the upcoming Bitcoin halving in April, pointing out that historically, Bitcoin’s value tends to dip in the weeks preceding such events, with corrections of 20% in 2020 and 40% in 2016.
Recent figures from Bitcointreasuries reveal that a whopping 93.6% of all bitcoins (19,656,760 BTC) have been mined as of mid-March 2024, leaving only 1.34 million BTC available for future mining, significantly constricting the asset’s forthcoming supply.
Post the Dencun update activation on March 13, Ethereum’s issuance plummeted to its lowest since August 2022, as per CryptoQuant’s observations. The Block reported that the Ethereum network has hit yearly peaks in terms of active and new addresses, daily transaction counts, and transaction volumes.
The surge in meme coin popularity has notably enhanced the valuation of the networks they are launched on. Solana (SOL) and Avalanche (AVAX) currencies have reached new local peaks. During pre-sales, network tokens are exchanged for meme tokens upon their release. According to ContentFi Labs, Solana has reemerged as a highly sought-after cryptocurrency among investors, with the introduction of new Meme tokens nearly every minute.
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