Crypto market down today, why?

The crypto market took a downturn after the SEC presented charges against Binance exchange, leading some analysts to believe that the BTC price bottom is not yet in. Bitcoin price hit a 60-day low on June 5 at $25,744 and traders worry that a larger price dip is possible. Similar worries exist for Ether (ETH) which traded above the $2,100 level after the Shapella upgrade only to be followed by a 7-day low of $1,794 on May 24. The recent SEC action adds to a long history of disputes, misconceptions, or mistrust over the actual use case of digital assets. The Binance news is widening the gap between equities and Bitcoin. The total value locked metric (TVL) is a common way to examine the health and sentiment of the crypto markets.

Related: Google searches for ‘crypto’ have decreased to the same levels as in 2020, with neutral sentiment towards BTC.

Besides a reduction in liquidity in the market, the inflow of exchanges indicates increased selling pressure, with a lack of buying pressure outside of stablecoins.

Given the significant macroeconomic challenges and low trading volume, it is likely that cryptocurrency volatility will persist in the foreseeable future.