Bitcoin (BTC), the world’s largest cryptocurrency, failed to stop its downward rally and experienced a significant drop below the $26,000 mark over the weekend. Bitcoin’s decline persisted as it reached a crucial support level of $25,250 on June 10, suggesting that the market bears are exerting downward pressure.

However, the cryptocurrency market has experienced many challenges, including regulatory issues and liquidity problems, which have resulted in losses for cryptocurrencies. As of writing, the global crypto market cap was recorded at $1.05 trillion, reflecting a 0.32 percent loss within 24 hours.

It is worth mentioning that the global crypto market was mainly affected by the recent announcement of lawsuits by the United States Securities and Exchange Commission (SEC) against two prominent cryptocurrency exchanges, Binance and Coinbase, early in the week.

This development has sparked concerns among investors, leading to a loss of confidence and subsequent price declines.

In the meantime, liquidity issues in the crypto market have also played a role in shaping recent market trends. Thus, these factors have created a challenging environment for investors and have contributed to substantial price drops in the crypto market.

Cryptocurrency Market Updates and Investor Sentiment

As we mentioned previously, the global cryptocurrency market experienced a significant decline following the legal action taken by the United States Securities and Exchange Commission (SEC) against two major crypto exchanges, Binance and Coinbase.

This development has caused concern among investors, as the SEC declared that 23 cryptocurrencies are classified as securities. Consequently, the number of cryptocurrencies now considered securities by the SEC has risen to 67.

Despite the concerns, Bitcoin (BTC) has managed to hold its ground better than other cryptocurrencies. This indicates that large financial institutions are not panicking and selling off their Bitcoin holdings. Thereby, Bitcoin’s dominance in the cryptocurrency market has increased to its highest level this year, reaching 47.6%.

Furthermohttps://www.federalreserve.gov/

re, the decline witnessed in several blockchain-based cryptocurrencies can be attributed to the announcement made by Robinhood, a renowned financial services company.

Robinhood’s decision to remove Cardano (ADA), Polygon (MATIC), and Solana (SOL) from its platform had a substantial impact on the prices of these cryptocurrencies.

Due to the ongoing uncertainty, it is highly likely that many investors will choose a cautious approach and prefer to wait until market conditions become more predictable.

US Federal Reserve’s Rate Hike Pause: Positive Outlook for Crypto Market

Across the ocean, there is some positive news for the crypto market as the US Federal Reserve (US Fed) decided to pause its rate hikes. This decision is a potentially significant factor that could help the crypto market regain strength.

It’s worth noting that the US Fed has raised interest rates by 500 basis points to combat inflation and prevent a potential recession.

Hence, the crypto market will react favorably to the recent announcement of a pause in rate hikes. This positive response has the potential to limit additional losses within the crypto market.

Investors are hopeful that the decision by the US Federal Reserve will prove beneficial for cryptocurrencies, ultimately fostering market stability.

US Dollar Weakness & Impact on Crypto Market

The broad-based US dollar showed slight stability on Monday, although it remained close to multi-week lows against certain major currencies. However, the traders remained cautious ahead of upcoming monetary policy decisions from various central banks, including the Federal Reserve, which is of particular significance.

Meanwhile, the policy meetings of the Fed, the European Central Bank (ECB), and the Bank of Japan (BOJ) will heavily influence global crypto market sentiment throughout the week, as investors eagerly seek insights from policymakers regarding the future trajectory of interest rates.

Furthermore, the upcoming release of US May inflation data on Tuesday and the Fed’s two-day meeting will be in the spotlight.

Apart from this, the weakness of the US dollar was seen as an additional factor that has played a role in stabilizing and revitalizing the strength of the crypto market.

Market participants have closely monitored this relationship between Bitcoin (BTC) and the US dollar, recognizing its significance in shaping market dynamics.

Bitcoin Price

Bitcoin encounters resistance at the $26,180 level and discovers support approximately at $25,400, resulting in a consolidation phase.

The candlestick formations reflect uncertainty among investors, supported by indicators such as the RSI and MACD.

Around $25,900, the 50-day EMA acts as a barrier, while a descending triangle pattern indicates a bearish sentiment.

A breakdown below $25,400 could trigger further selling, with potential support levels at $24,950, $24,700, or $24,400.

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