Crypto Market Drops 1.1% as Bitcoin Tests Key Support
Total crypto market capitalization declined to $2.63 trillion on Thursday. The drop followed a surge in US producer prices and rising government bond yields.
Total cryptocurrency market capitalization fell by 1.1 percent to 2.63 trillion dollars. Investors moved away from risk assets after US inflation data showed a sharp rise in producer prices. This data reinforced expectations for a Federal Reserve rate hike. Government bond yields increased in response to the economic figures. The market remains within a consolidation range observed over the last few days. Traders are adopting a wait-and-see attitude ahead of further data releases.
Bitcoin fell below the 77,000 dollar threshold on Thursday. The asset hit an eight-day low against the backdrop of rising yields. On weekly charts, Bitcoin is pulling back from the 50-week moving average. This technical move undermines recent bullish efforts. Buyers are currently providing support at the lower boundary of the consolidation range. The price action suggests a pause rather than a confirmed reversal.
Ethereum faces technical resistance
Ethereum has traded sideways for several weeks. The altcoin has failed to establish a price above 2,500 dollars. Resistance is intensifying at the 200-week moving average. Ethereum has been unable to break through this level. The 50-week moving average has fallen below the 200-week moving average. This configuration creates a death cross signal. Similar signals in 2019 and 2023 did not trigger intensified sell-offs. Breaking above the longer moving average has historically triggered rallies on six occasions.
Institutional flows remain mixed
CryptoQuant reports a high proportion of large Bitcoin transfers to exchanges. These transfers are often followed by coin sales. The negative Coinbase premium indicates weak demand in the US market. Anthony Pompliano, CEO of ProCap Financial, argues Bitcoin is poised for a rally. He cites a recent 24.8 percent seven-day rise as evidence of strength. Data on liquidations and institutional capital inflow support this bullish view. The Bank for International Settlements warned of financial stability risks from AI investment. A correction in the AI market could trigger broader financial issues.
Dogecoin ETF sees closure
Bitwise is closing its Dogecoin ETF ten months after launch. The company attributed the closure to a lack of investor interest. The meme coin has lost more than 45 percent of its value since the fund launched. Two other Dogecoin ETFs from different companies remain on the market. This move reflects a broader trend of underperforming digital assets exiting regulated products. The market continues to consolidate as participants await clearer macroeconomic signals.
