Crypto Market Valuation Drops 9% Amid Bitcoin Sell-Off and Tech Stock Concerns
The total crypto market valuation decreased over 9% in the past 24 hours, dropping to around $3.4 trillion. The market lost more than $849 million, primarily affecting long traders with around $790 million liquidated.
Key factors include:
- Bearish sentiment surrounding Bitcoin is evident, with a potential double top formation and a bearish divergence in the daily Relative Strength Index (RSI).
- The tech sector faced a sell-off due to advances by China's AI lab DeepSeek, which developed a large language model at a significantly lower cost and time than US counterparts like OpenAI.
- This development has impacted confidence in US tech firms, while the correlation between the crypto market and global indexes remains positive.
- Robert Kiyosaki predicts a major stock market crash in February 2025 but believes Bitcoin will thrive in the long term.
- Nations, particularly the US, are preparing to adopt Bitcoin and crypto reserves as a hedge against economic uncertainties.
The regulatory landscape for crypto is evolving, with new frameworks emerging, notably in Europe and the US. Institutional adoption of digital asset investment products is rising, shifting the upcoming bull rally dynamics. Cash inflows into US spot Bitcoin ETFs are not easily flowing into the altcoin market, limiting liquidity to altcoins with significant real-world utility.
Under potential future policies, including those from the Trump administration, an extended bull rally could last until 2028.