The market capitalization of cryptocurrencies has fallen by more than 6 percent in the past 24 hours to about $2.7 trillion. Bitcoin (BTC) price led the altcoin market into a notable sell-off, cooling bullish sentiment. As a result, more than $666 million was liquidated from the cryptocurrency market, including more than $531 million from long traders.
The sudden sell-off of cryptocurrencies has led most short-term traders to turn to the stablecoin market. According to the latest market data as of this report, Tether's USDT trading volume was approximately $112.7 billion over a 24-hour period, which is higher than Bitcoin and Ethereum combined.
The most important reasons for the decline in the cryptocurrency market today
Healthy market correction
For the first time in the history of cryptocurrency bull markets, the price of Bitcoin surpassed its previous all-time high (ATH) ahead of the halving event. The increasing demand for Bitcoin through the recently approved spot BTC ETFs in the US has greatly influenced the recent uptrend.
However, a healthy market correction was expected before the halving rally began. According to a Bitcoin analysis conducted by famous cryptocurrency analyst, Captain Vibek, the price of Bitcoin is likely to fall towards $60,000 in the coming days, before rebounding against the new ATH.
Selling news event
The past few weeks have seen huge speculation in the altcoin market following Dencun's Ethereum upgrade. With the upgrade taking effect on the Ethereum mainnet on Wednesday, the upgrade quickly turned into a news selling event.
However, the cryptocurrency market correction is expected to allow long-term investors to acquire more digital assets.
