Why Is the Crypto Market Down Today?

The total crypto market cap (TOTAL) and Bitcoin continue to note minimal movements, with the latter falling below $85,000 again. Among the altcoins, Pi Network (PI) took the biggest hit, falling by 16% over the last 24 hours.

In the news today:-

• Ethereum led the DApp platform market in Q1 2025 with $1.021 billion in fee revenue, far surpassing competitors like Base and BNB Chain. While Ethereum’s dominance continues, other networks like Arbitrum and Avalanche are seeing growth but remain well behind in DApp fee generation.
• A group of veteran traders in the US is launching USDi, a stablecoin pegged to inflation using CPI data and TIPS performance. Founder Michael Ashton aims to provide an asset that retains purchasing power, but USDi faces significant competition in the crowded stablecoin market.

The Crypto Market Fails To Recover

The total crypto market cap lost $31 billion over the past 24 hours, slipping below the $2.60 trillion support level. This decline reflects the ongoing lack of bullish cues from broader financial markets, keeping the overall market sentiment subdued. Investors remain cautious as volatility continues.

The bullish target for TOTAL remains at $2.74 trillion. However, to reach this goal, the total crypto market cap must secure the $2.61 trillion support level. Holding this level will provide the necessary foundation for a potential rebound. Without it, the market could face further losses.

Total Crypto Market Cap Analysis. Source: TradingView

If the bearish trend continues, the total crypto market cap could dip to $2.50 trillion. A fall below this key level would signal extended market weakness and delay any potential recovery.

Bitcoin Remains Flat

Bitcoin’s price has remained relatively unchanged but failed to break through the critical $85,000 resistance level. Successfully flipping this level into support is essential for Bitcoin to continue its upward movement. Without this support, further growth could be hindered, leaving the price stagnant.

At the current pace, Bitcoin is likely headed for a decline towards $82,619. If the price falls below this support level, it could slip to $80,000. Such a drop could trigger panic selling among investors, causing further downward pressure on the price.

Bitcoin Price Analysis. Source: TradingView

Flipping $85,000 into support is crucial for Bitcoin’s bullish outlook. Successfully breaching $86,848 would likely propel Bitcoin towards $89,800. This upward momentum would invalidate the bearish thesis, giving Bitcoin a clear path for recovery and potential further gains, provided investor confidence remains strong.

Pi Network Loses This Week’s Gains

Pi price is down by 16% in the last 24 hours, trading at $0.61. The altcoin is currently holding above the support level of $0.61. However, the price remains vulnerable to further corrections, and a sustained decline could lead to additional losses if key support levels fail to hold.

If Pi fails to hold above $0.61, it could fall to $0.51. This drop would likely increase selling pressure, signaling a potential continuation of the downtrend. Losing the $0.51 support could push Pi further down to $0.40, marking a significant price decline and worsening investor sentiment.

PI Price Analysis. Source: TradingView

Reclaiming $0.61 as support could signal a potential recovery for Pi. Successfully holding this level could propel the price beyond $0.70, with further gains towards $0.87. If this occurs, the bearish outlook would be invalidated, and a more bullish scenario would unfold for the altcoin.