Key Insights:
- Crypto market cap slips under $4 trillion as Bitcoin, Ethereum, and XRP slip more than 2%.
- AI Coins fell as China targeted Nvidia for violating antitrust laws with a 2020 acquisition of Mellanox.
- The crypto market saw $450 million in liquidations, with $150 million liquidated in an hour.
Top crypto Bitcoin, Ethereum, and XRP slip more than 2% in the last few hours, causing broader selloffs in the crypto market on Monday. Within an hour, BTC price fell from $116,700 to $114,700 despite positive sentiment due to Fed rate cuts resuming this week.
The crypto market cap slumps below $4 trillion as ETH, XRP, Solana (SOL), Cardano (ADA), Hyperliquid (HYPE), and Chainlink plunge 3-7%. Dogecoin (DOGE) dropped more than 10% over the last 24 hours. Notably, Coinbase 50 Index tumbled more than 2.5%.
AI coins including WLD, NEAR, RENDER, and VIRTUAL were worst impacted amid reports of China claiming Nvidia violated anti-monopoly law.
Crypto Market Falls as China Ruled Nvidia Violated Anti-Monopoly Laws
Bloomberg reported that China has targeted Nvidia Corp violated anti-monopoly laws with a high-profile 2020 acquisition deal of Mellanox.
China’s State Administration for Market Regulation (SAMR) in its initial investigation found Nvidia violated China’s anti-monopoly laws in relation the acquisition and the conditions agreed wiith the regulator.
NVDA stock slip almost 2% to $174 in premarket hours on Monday, dragging down AI coin with it. Also, the technology stock correction will Bitcoin has triggered some selloff in Bitcoin.
World (WLD) price fell over 6% in the last 24 hours, with the WLD price trading at $1.57. The intraday low and high were $1.54 and 1.64, respectively.
Trading volume has decreased nearly 22% over the last 24 hours, indicating a massive decline in interest among traders.
Other top AI crypto tokens also recorded massive downside moves. NEAR Protocol (NEAR), RENDER and VIRTUAL also fell more than 5%. However, some AI coins have started witnessing a buy the dip sentiment.
$450 Million in Crypto Liquidations
The crypto market saw $450 million in liquidations in the last 24 hours, with nearly $380 million in longs and $70 million in shorts liquidated over the last 24 hours.
Over 170K traders were liquidated in the last 24 hours, with the largest single liquidation order of BTCUSD worth $9 million on crypto exchange Bybit.
Notably, $150 million in longs were liquidated in just an hour, according to Coinglass data.
This comes ahead of high expectations of U.S. Federal Reserve resuming interest rate cuts on Wednesday. With expectation of three Fed rate cuts by 75 bps in total this year.
However, JPMorgan warned U.S. stocks could dropped if the Federal Reserve restarts rate cuts this week. Markets are near record highs despite weak labor data, but history shows equities often pause after easing begins.
Traders expect a 25 bps cut this week, but inflation concerns may slow the Fed’s response later this year, Morgan Stanley reported.
Why is Crypto Down: Analysts Anticipate Bitcoin Price Reclaiming $120K
Crypto analysts see strength in Bitcoin upside momentum to trigger a move to reclaim $120K. Spot Bitcoin ETF inflows, upcoming Fed rate cut, and whale accumulations to support a recovery.
Popular analyst Rekt Capital pointed out Bitcoin price weekly closed above $114K. This means BTC is one step closer to reclaiming its re-accumulation range.
He predicted an upside move and the end of the correction phase after successful reclaim of $114K.
At the time of writing, BTC price was down 0.5% in the past 24 hours, with the price currently trading at $115,137. The 24-hour low and high are $114,684 and $116,784, respectively.
Furthermore, the trading volume has increased by 40% in the last 24 hours, indicating a rise in interest among traders.