Cryptocurrency, market cap collapses to $2.17 trillion..."Largest sell-off since 2022"

▲ Cryptocurrency decline/AI generated image

The cryptocurrency market fell by over 1% in a single day, giving up the $2.17 trillion overall market capitalization mark. The shift of risk capital to the U.S. stock market, coupled with Strategy's Bitcoin sales, added further pressure.

According to BeInCrypto, a cryptocurrency-focused media outlet, on July 7 (local time), the total cryptocurrency market capitalization fell below $2.17 trillion. The S&P 500 index closed at 7,537 on July 6, up 0.72%. BeInCrypto analyzed that some risk capital moved from cryptocurrencies to U.S. stocks.

The total cryptocurrency market capitalization lost the Fibonacci 0.618 retracement level of $2.17 trillion. This level has now turned into a resistance line. To regain momentum towards $2.29 trillion, it needs to recover $2.17 trillion and $2.22 trillion sequentially. If selling pressure continues, $2.14 trillion and $2.10 trillion are the next support levels.

Strategy's sale of Bitcoin (BTC) also weighed on the market. Strategy sold approximately 3,588 BTC for about $216 million from June 29 to July 5. This sale was made to secure funds for dividend payments and is the largest since 2022. Bitcoin fell by about 1.3%.

BeInCrypto pointed out that selling volume did not surge. For Bitcoin to regain its bullish momentum, it needs to recover $64,688 and $65,589 sequentially. If $62,855 breaks, $60,805 is suggested as the next lower level.

MemeCore (M) led the decline, falling over 13% in 24 hours. The $1.18 support level is a key turning point. If it holds $1.18 and surpasses $1.84, it could transition to a bullish trend. Conversely, if $1.18 breaks, $0.78 and $0.45 are suggested as the next lower levels.

[Key Article Summary]

-The total cryptocurrency market capitalization fell by over 1%, dropping below $2.17 trillion.

-Strategy sold 3,588 BTC for approximately $216 million, and Bitcoin fell by about 1.3%.

-For Bitcoin, defending the $62,855 support level, and for MemeCore, defending the $1.18 support level, were presented as key junctures.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*