What’s Behind the Crypto Market’s 2.98% Decline Today?

2 min read | January 23, 2025 02:46 AM EST | By Team Kalkine Media

Google News:

What’s Behind the Crypto Market’s 2.98% Decline Today? — Image source: Shutterstock

Recent News

Why Is the TSX Completion Index Gaining as Midcaps Attract Flows?

Why Is the TSX Completion Index Watching Celestica’s Computing Expansi...

Why Is Rate Stability Shaping Canada’s Small-Cap Mining Outlook?

Why Is the S&P/TSX 60 Watching Royal Bank’s Banking Reach?

Make Kalkine Media
My Trusted Source

Highlights:

Crypto market experiences a 2.98% decline in market cap, now valued at $3.53 trillion.

Bitcoin faces a 3.07% decrease in price alongside ETF outflows of $95.62 million.

Despite market pullback, the Fear & Greed Index remains at a "Greed" score of 60.

The cryptocurrency sector is undergoing a downturn, with market capitalization slipping by 2.98% to approximately $3.53 trillion. This decrease has coincided with a 24.92% reduction in trading volume, which now stands at around $147.07 billion. A variety of factors have contributed to the decline, including speculation about the effects of recent political events, particularly the inauguration of President Donald Trump, on market sentiment and performance.

Bitcoin's Price Decline:

Bitcoin has faced a 3.07% drop in its price. This decline is compounded by ETF outflows totaling $95.62 million. As one of the most widely recognized cryptocurrencies, Bitcoin's price movement serves as an important indicator for the broader crypto market. The ongoing drop in Bitcoin's value reflects the current trends affecting the sector.

Market Sentiment and Fear & Greed Index:

Despite the overall market downturn, the Fear & Greed Index remains at a "Greed" score of 60. This suggests that many participants continue to maintain an optimistic outlook on the crypto space, even as broader metrics reflect a cooling period. The Fear & Greed Index is commonly used to gauge market sentiment, with higher scores indicating confidence and lower scores signaling caution.

Impact of External Factors:

The downturn in the crypto market may be influenced by several external factors, including global economic conditions, regulatory changes, and shifts in market sentiment. Political developments, such as the transition to a new U.S. president, may also play a role in shaping the current market behavior.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.