- Regulatory actions deepen market fear as long liquidations exceed $253M in 24 hours.
- Bitcoin dominance climbs to 57.99% as investors retreat to established crypto assets.
- Small-cap tokens surge despite market turmoil, with $TUT leading gains at 131%.
The cryptocurrency market saw a sharp downturn in the last 24 hours. News that the Nigerian government charged major exchange Binance, alleging it facilitated money laundering, appeared to trigger the move.
This development sparked evident fear among traders, leading to significant selloffs, increased volatility, and over $253 million in liquidated long positions across derivatives markets within that 24-hour period.
How Did the Market React? BTC Dominance Rises, Fear Returns
Several top tokens, including KAITO, EIGEN, IP, and the TRUMP meme coin, dropped more than 10% following the news, contributing to the broader market decline. Reflecting this shift towards risk-off sentiment, the total crypto market capitalization fell towards $2.95 trillion.
Bitcoin dominance, meanwhile, climbed to nearly 58% as investors seemingly sought relative safety in Bitcoin amid the volatile conditions. The market’s cautious mood was also captured by the Crypto Fear & Greed Index, which rested at 44, indicating “Fear” as the prevailing emotion among participants.
Related: Token Unlocks Alert: NEON, ADA, ENA, EIGEN, HFT, MAVIA Incoming
Other Market Developments Unfold During Volatility
Even during this market turbulence, other unrelated developments continued across the crypto landscape. Blockchain project Sei Network is reportedly exploring a potential acquisition of consumer genomics firm 23andMe, potentially signaling novel diversification strategies within the industry.
Separately, Tether’s CEO alluded to the possibility of launching a US dollar stablecoin specifically for domestic use, a move that could intensify competition within the stablecoin market.
On a positive regulatory note, the SEC concluded its investigation into Crypto.com without pressing charges, providing some relief. These disparate events highlight the crypto market’s constantly dynamic nature.
Related: SAND, MANA, KAIA, and EIGEN Shine as Top Low-Cap Altcoins to Watch in 2024
Which Large-Cap Tokens Felt the Pressure?
The regulatory news involving Binance sent negative ripples across several higher-profile altcoins. KAITO dropped 12.40% over 24 hours, trading around $1.13 and extending its weekly loss past 18%. Its market cap subsequently fell to $273 million.
Eigenlayer (EIGEN) saw a similar decline, down 11.11% to $1.05, bringing its market cap to $257 million. Story (IP) slid nearly 9% to $5.28, despite maintaining a larger market cap exceeding $1.35 billion.
The TRUMP token also dropped 8.86% to $10.50, marking its worst recent daily performance, though its market cap held above $2 billion.
Small Caps Buck the Trend: TUT, VIDT, AL Post Gains
Despite the broad selloff hitting larger tokens, a handful of small-cap assets managed strong positive gains during the same period.
Tutellus ($TUT) surged 131% to $0.0137, albeit with low trading volume. VIDT DAO ($VIDT) rose 44.5% to $0.0194, driven by bullish investor sentiment and strong volume near $37 million.ArchLoot ($AL) gained 25.9%, now trading at $0.1231, while Layer3 ($L3) soared 20.1% to $0.128. CARV ($CARV) also saw solid movement, climbing 18.6% to reach $0.4669. These gains indicate continued investor interest in low-cap opportunities even during market instability.
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