Ethereum

Bitcoin

Kamala Harris

<p>Several factors have scared the markets. First, the Israel-Gaza war appears to extend well into the future. Second, the US elections have induced volatility in the markets. Thirdly, <a href="https://www.thecoinrepublic.com/2024/05/19/jack-dorsey-predicts-bitcoins-will-hit-1m-by-2030-what-are-other-top-coins-price-predictions/" rel="noopener noreferrer nofollow">Bitcoin’</a>s inability to break above $70k seems to have prompted buyers to book profits.</p>
<p>Finally, Grayscale alone had sold $800 million worth of Ethereum in the market in the last two days due to ETF withdrawals.</p>
<p>Today, the crypto markets have shown severe losses in multiple major cryptocurrencies such as <a href="https://www.thecoinrepublic.com/2024/04/15/ethereum-price-prediction-what-would-be-the-next-target-eth/" rel="noopener noreferrer nofollow">Ethereum</a>, Layer-2 coins, Memecoins, the Solana Ecosystem and AI coins.</p>
<p>Other areas have witnessed less selling. Even the newly launched Ethereum ETFs have shown $133 million outflows on their second trading day.</p>
<h2 class="wp-block-heading" id="h-israel-iran-war-on-the-cards"><strong>Israel-Iran War on the Cards</strong></h2>
<p>Benjamin Netanyahu’s explosive speech in front of the US Congress has sparked speculations that the Israel-Gaza war is not ending anytime soon. Further, the war might escalate to include Iran and Yemen and even might draw the US and Russia towards direct confrontation.</p>
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  <div class="youtube-embed" data-video_id="Kwi0uD2QlKw"><iframe title="LIVE: Netanyahu delivers speech before Congress" width="696" height="392" src="https://www.youtube.com/embed/Kwi0uD2QlKw?feature=oembed&amp;enablejsapi=1" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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<p>As in traditional markets, wars or even speculations of war have been market disruptors. Last time, when Iran and Israel came close to war earlier this year, the crypto markets responded very negatively.</p>
<p>The adverse reaction to conflict occurs because wars create policy and economic uncertainty, which nobody likes in the financial markets.</p>
<h2 class="wp-block-heading" id="h-us-elections-induce-volatility-in-crypto-market"><strong>US Elections Induce Volatility in Crypto Market</strong></h2>
<p>As the US election drama heats up, the current US President, Joe Biden, has exited the race for the US Presidential elections. Current Vice President Kamala Harris has been officially nominated as the new Democratic presidential candidate.</p>
<p>The new change in Democrat leadership has forced the market to overnight liquidate $50 million worth of positions.</p>
<p>With the Democrats increasing their winning odds, Gary Gensler, whose actions have been highly controversial in the crypto markets, might still be on the chair of the SEC. This perception has contributed well to today’s selloffs.</p>
<p>According to Polymarkets, Kamala Harris’s odds of winning are 34%, compared to Donald Trump’s 61%.</p>
<figure class="wp-block-image size-full"><img fetchpriority="high" decoding="async" width="845" height="437" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-121.png" alt="Polymarket Bets on US Presidential Election Winner in 2024, Source: Polymarket.com&nbsp;" class="wp-image-623794" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-121.png 845w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-121-300x155.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-121-768x397.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-121-150x78.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-121-696x360.png 696w" sizes="(max-width: 845px) 100vw, 845px">
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  Polymarket Bets on US Presidential Election Winner in 2024, Source: Polymarket.com&nbsp;
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<h2 class="wp-block-heading" id="h-bitcoin-sparks-profit-booking"><strong>Bitcoin Sparks Profit Booking</strong></h2>
<p>Another reason for today’s wild session was Bitcoin’s inability to cross $70k. As a result, Bitcoin slid below $64k, and the entire market entered a correction phase. This is because Bitcoin still dominates 54.8% of the crypto markets.</p>
<figure class="wp-block-image size-large"><img decoding="async" width="1024" height="447" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-120-1024x447.png" alt="Bitcoin’s Loss Exceed 3.5% Today, Source - CoinMarketCap" class="wp-image-623789" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-120-1024x447.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-120-300x131.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-120-768x335.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-120-1536x670.png 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-120-150x65.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-120-696x304.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-120-1068x466.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-120.png 1600w" sizes="(max-width: 1024px) 100vw, 1024px">
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  Bitcoin’s Loss Exceed 3.5% Today, Source – CoinMarketCap
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<h2 class="wp-block-heading" id="h-grayscale-ethereum-sell-off-and-crashing-crypto-market"><strong>Grayscale Ethereum Sell-off and Crashing Crypto Market</strong></h2>
<p>Top cryptocurrencies like Ethereum witnessed an 8.3% correction to reach $3174, the price level before the Ethereum ETF approval.&nbsp;</p>
<p>Further, Ethereum ETFs, which saw $105 million in inflows on the first day of their launch, surprisingly saw an outflow of $133 million on the second day. However, the ETF leading the outflows was a usual suspect: the Grayscale Ethereum Trust, which lost over $800 million within two days after launch.</p>
<h2 class="wp-block-heading" id="h-altcoin-marketcap-shrinks"><strong>Altcoin Marketcap Shrinks</strong></h2>
<p>A further sell-off is now being seen in all major altcoins like memecoins, politifi coins, and layer-2 projects, among others.</p>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="362" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-119-1024x362.png" alt="Altcoin Market Cap on 25 July 2024, Source: Tradingview.com" class="wp-image-623784" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-119-1024x362.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-119-300x106.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-119-768x271.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-119-1536x542.png 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-119-150x53.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-119-696x246.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-119-1068x377.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/07/image-119.png 1600w" sizes="(max-width: 1024px) 100vw, 1024px">
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  Altcoin Market Cap on 25 July 2024, Source: Tradingview.com
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<p>Bitcoin’s market dominance has increased to 54.8%, clearly showing a shrinking altcoin market cap. The altcoin market cap is now at $994 billion after a drop from $1.030 trillion a day earlier.&nbsp;</p>
<p>All of these factors have intensified the market sell-off together.&nbsp;</p>
<p>The post <a href="https://www.thecoinrepublic.com/2024/07/25/why-was-the-crypto-market-down-this-week/" rel="noopener noreferrer nofollow">Why Was The Crypto Market Down This Week?</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.</p>

Why Was The Crypto Market Down This Week?

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