Why Is Crypto Down Today?
The global cryptocurrency market capitalization has dropped by 2% over the past 24 hours, now sitting at $2.38 trillion. During this period, total crypto trading volume reached $79.9 billion.
Most top 100 coins are in the red, with Shiba Inu (SHIB) experiencing the largest decline, falling 4.1% to $0.00001873. Dogecoin (DOGE) followed with a 2.8% drop, while Notcoin (NOT) decreased by 2.6%.
On the other hand, certain coins are posting gains. Conflux (CFX) leads the green category with an 11% increase, trading at $0.1956, followed by Bittensor (TAO), up 10.3% to $594.78. Other gainers are up by 9% or less.
Looking at the top 10 cryptocurrencies by market cap, Dogecoin suffered the steepest fall, down 2.8% to $0.12295, while Binance Coin (BNB) dropped by 1.8% to $583. However, XRP is the top gainer, up 3.2% and currently trading at $0.64376, followed by Solana (SOL), which rose 1.3% to $157.7. Bitcoin (BTC) slipped 1.4% to $64,630.
In a positive development, the U.S. market for spot Ethereum ETFs recorded $84.5 million in net inflows, breaking a six-week trend of outflows.
UK Sees First Crypto ATM Conviction
In major regulatory news, Olumide Osunkoya pleaded guilty to five offenses related to operating an illegal crypto ATM network in the UK, marking the FCA’s first criminal prosecution for unregistered crypto ATM activities. Osunkoya ran over 11 machines without FCA approval, processing more than £2.6 million in transactions. This conviction highlights the increasing regulatory scrutiny in the crypto space.
Derivatives Market Recovery Amid Positive Sentiment
A report from Bybit and Block Scholes shows positive sentiment in the derivatives market, with stable open interest in futures and perpetual swaps. Despite a drop in futures trading volume, traders are maintaining their positions, indicating optimism. The market reacted positively to the U.S. Federal Reserve’s recent 50 basis point rate cut on September 18, 2024, which has bolstered BTC and ETH spot prices.
Implied volatility in short-dated options has trended downward, suggesting further positive momentum in the short term.
Stablecoin Market Cap Continues to Grow
Stablecoins have recorded their twelfth consecutive month of growth, with the total market cap rising 1.5% to $172 billion in September, according to CCData. Tether (USDT) leads the market, hitting an all-time high of $119 billion, holding 69.2% market dominance. USDC also saw a 3.18% increase, bringing its market cap to $35.6 billion.
The top five centralized stablecoins collectively hold $125 billion in U.S. Treasury bills, accounting for 80.2% of their reserves. However, the recent U.S. Federal Reserve interest rate cuts may result in a $625 million loss in annual interest income for every 50bps cut, according to CCData.
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