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<p><strong>The cryptocurrency market is currently experiencing a downturn, with the Market Cap standing at $1.16T, a decrease of 1.91% in the last 24 hours. </strong></p> 
<p>The two major cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), are also facing challenging times, with both coins trading below their support levels of $29k and $1,850 respectively. Let’s delve into the reasons behind today’s market slump.</p> 
<h2 class="wp-block-heading" id="the-curve-finance-hack">The Curve Finance Hack</h2> 
<p>In July 2023, the DeFi platform <strong><a href="https://captainaltcoin.com/defi-on-danger-after-curve-hack-do-this-to-protect-yourself-2/" target="_blank" rel="noopener noreferrer nofollow">Curve Finance fell victim to a significant hack</a></strong>, resulting in a substantial loss of funds. The exploit was traced back to a “re-entrancy” bug in Vyper, a programming language that powers parts of the Curve system. This bug allows attackers to repeatedly call a protocol to steal assets. Several stablecoin pools on the platform were drained by the hackers.</p> 
<p>The exact amount drained from Curve due to the attack was initially unclear, with estimates ranging from $42 million to $70 million. However, blockchain security firm PeckShield confirmed that the estimated amount wiped out was $50 million. The various pools hacked included crv/eth, aleth/eth, mseth/eth, and peth/eth.</p> 
<p>The attack had a significant impact on the Curve ecosystem. The value of Curve’s native CRV token fell by 17%, and the total value of assets locked on Curve dropped from over $3 billion to $1.7 billion.</p> 
<p>In response to the attack, a bot operator ‘c0ffeebabe.eth’ ethically stole 2,879 ETH, worth nearly $5.5 million, from the hacker and returned it to the platform. However, there were concerns that the incident could affect the entire DeFi ecosystem, and the issue also impacted other projects that use the Vyper programming language.</p> 
<h2 class="wp-block-heading" id="lack-of-new-money-entering-the-market">Lack of New Money Entering the Market</h2> 
<p>Currently, we are not seeing any new money entering the market. It’s summer, and historically, there is less activity in the crypto industry during this season. It might sound strange, but the fact that many people are on vacation in late July and August can influence the market downtrend.</p> 
<p>The entire market is in a state of stagnation, with BTC fluctuating between $29k and $31k for the past 30 days, which is not a significant change.</p> 
<h2 class="wp-block-heading" id="the-decline-of-bitcoin-and-ethereum">The Decline of Bitcoin and Ethereum</h2> 
<p>Bitcoin, after crossing the level of $31,000, is now trading in a consolidated range as investors are eagerly looking nervous. Most of the currencies still lag significantly behind their all-time highs. For instance, Bitcoin is still more than 50% down from its all-time high level of $69,000 reached in November 2021. Similarly, Ethereum, now trading at the levels of $1,800, touched the all-time high levels of $4,600, way back in 2021.</p> 
<figure class="wp-block-image size-large"> 
 <img decoding="async" loading="lazy" width="1024" height="699" src="https://captainaltcoin.com/wp-content/uploads/2023/08/chart-1-1024x699.png" alt="" class="wp-image-301738" srcset="https://captainaltcoin.com/wp-content/uploads/2023/08/chart-1-1024x699.png 1024w, https://captainaltcoin.com/wp-content/uploads/2023/08/chart-1-300x205.png 300w, https://captainaltcoin.com/wp-content/uploads/2023/08/chart-1-768x524.png 768w, https://captainaltcoin.com/wp-content/uploads/2023/08/chart-1-1536x1048.png 1536w, https://captainaltcoin.com/wp-content/uploads/2023/08/chart-1-2048x1397.png 2048w, https://captainaltcoin.com/wp-content/uploads/2023/08/chart-1-220x150.png 220w, https://captainaltcoin.com/wp-content/uploads/2023/08/chart-1-100x68.png 100w, https://captainaltcoin.com/wp-content/uploads/2023/08/chart-1-513x350.png 513w, https://captainaltcoin.com/wp-content/uploads/2023/08/chart-1-788x537.png 788w, https://captainaltcoin.com/wp-content/uploads/2023/08/chart-1.png 960w" sizes="(max-width: 1024px) 100vw, 1024px"> 
</figure> 
<p><em><strong>Source: <a class="thirstylink" rel="noopener noreferrer nofollow" target="_blank" title="CoinStats" href="https://captainaltcoin.com/go/coinstats-3/" data-shortcode="true">Coinstats</a></strong></em></p> 
<p>As we mentioned earlier, BTC has broken its support level of $29k, and Ethereum broke its support level of $1,850. This affects other altcoins, as historically, these coins have followed the performance of BTC and ETH, especially in the long term.</p> 
<h2 class="wp-block-heading" id="the-decline-of-bald-coin">The Decline of BALD Coin</h2> 
<p>In July 2023, the BALD coin experienced a significant decline in price, associated with allegations of a rug pull, which refers to a situation where developers exit a project after manipulating the price and liquidity. The BALD memecoin collapsed in price, with a reported 85% fall post-launch. Collectors alleged an exit scam, suggesting that the developer may have sold coins. </p> 
<p>The developer of BALD denied the rug pull and claimed not to have sold any coins. These kinds of situations always cause concern among traders and investors, and you might see some of them leaving the market for some time, which also might have influenced this fall.</p> 
<h2 class="wp-block-heading" id="not-capitalizing-on-xrp-s-big-news">Not Capitalizing on XRP’s Big News</h2> 
<p>Another factor contributing to the current market downturn is the surprising lack of momentum following significant news about Ripple’s XRP. In July, Ripple won a case against the U.S. Securities and Exchange Commission (SEC), a significant victory for the cryptocurrency. However, the market reaction to this news was surprisingly short-lived.</p> 
<blockquote class="wp-block-quote"> 
 <p>As @theirish_man analyst put it, <em>“I feel we have sucked the ‘bullishness’ out of the spot ETF news, I feel the $XRP news just sort of came and went, and I was surprised how short-lived that upward move was.” This lack of sustained positive response to such significant news suggests a certain level of market fatigue or disinterest, which can contribute to a bearish trend.</em></p> 
</blockquote> 
<p>Furthermore, volumes on exchanges are diminishing, and implied volatility is at multi-year lows. It seems that many people are either cashing out or taking their chances on-chain, further contributing to the market’s stagnation.</p> 
<p>This lack of capitalization on significant news events, combined with the other factors we’ve discussed, paints a picture of a market in a state of flux. It’s a reminder that even significant news events, like Ripple’s legal victory, don’t always translate into sustained market momentum. This is yet another example of the unpredictability and volatility of the crypto market.</p> 
<h2 class="wp-block-heading" id="what-s-next">What’s Next?</h2> 
<p>Top-notch crypto expert @PARABOLIT suggests that real capitulation doesn’t even begin until below $25k, and right now, Bitcoin is just in the denial phase. This suggests that the market could potentially see further declines before any significant recovery begins.</p> 
<blockquote class="wp-block-quote"> 
 <p>Crypto analyst @CryptoTony also shared his thoughts: <em>“Good morning legends. FINALLY my short is coming in on #Bitcoin as we break the lows and gear towards my $28,000 target. Patience pays off.”</em></p> 
</blockquote> 
<p>This indicates that some traders are capitalizing on the downturn by shorting Bitcoin, further adding to the bearish sentiment.</p> 
<p>In general, based on all of the factors we mentioned above, we don’t expect a fast recovery. The new bull run times might be in October or November this year.</p> 
<p>However, it’s important to remember that the cryptocurrency market is highly volatile and unpredictable. These downtrends are a stark reminder of the inherent risks associated with investing in cryptocurrencies. Investors should trade carefully and only invest money they can afford to lose. The crypto market’s volatility can offer high rewards but also high risks. As always, due diligence and careful risk management are crucial when navigating the crypto market.</p> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com/why-is-the-crypto-market-down-today/">Why is The Crypto Market Down Today?</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com">CaptainAltcoin</a>.</p>

Why is The Crypto Market Down Today?

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