Crypto Market Plummets 7% as Bitcoin Drops 3% and Ethereum Falls 7%

The cryptocurrency market has experienced a notable downturn, with Bitcoin (BTC) and Ethereum (ETH) leading the decline. Over the past three consecutive days, the market has seen a significant correction, with BTC dropping to around $100,000 and ETH falling by over 7%. This decline has been attributed to profit-taking and broader market volatility, as investors react to various macroeconomic factors and internal market dynamics.

Bitcoin, which had been stabilizing around $106,000, saw a near 3% decline this week, bringing it close to the $100,000 mark. This drop has raised concerns among investors about further potential declines. Ethereum, on the other hand, experienced a sharp 7% decrease, with its price falling to $2,420. The decline in ETH has been particularly concerning, as it risks further drops to $2,260 after crossing below the support of a rising wedge.

The market's volatility has been exacerbated by various factors, including fears of a massive ETH sell-off and the offloading of $200 million worth of stETH by hackers. These events have added pressure to an already volatile market, leading to increased investor caution and a general sense of unease.

Despite the recent declines, some analysts remain optimistic about the long-term prospects of the cryptocurrency market. They point to the underlying fundamentals of blockchain technology and the growing adoption of digital assets as reasons for continued investment. However, the short-term outlook remains uncertain, with many investors adopting a wait-and-see approach as the market navigates through this period of volatility.

In other sectors, the PayFi sector saw a 4.25% decline in the past 24 hours, with Keeta (KTA), which had previously seen significant gains, falling by 14.05%. The CeFi sector declined by 4.45%, with Hyperliquid (HYPE) falling by 5.71%. The Layer1 sector dropped by 4.59%, with Cardano (ADA) and Sui (SUI) falling by 6.39% and 7.35% respectively. The DeFi sector dropped by 6.03%, with Chainlink (LINK) and Aave (AAVE) falling by 6.29% and 8.20%. The Layer2 sector dropped by 7.03%, with Arbitrum (ARB) falling by 9.46%.

The cryptocurrency sector index reflecting historical sector trends shows that the ssiMeme, ssiLayer2, and ssiNFT indices all declined by 8.07%, 6.98%, and 6.96% respectively in the past 24 hours. The Meme sector declined by 8.04%, within which OFFICIAL TRUMP (TRUMP) and Pepe (PEPE) dropped by 10.00% and 10.68% respectively, while Fartcoin (FARTCOIN) bucked the trend and rose by 8.34%.