The total market capitalization of cryptocurrencies has experienced a notable decline in recent days as investors jumped ship amid the increasing regulatory scrutiny faced by the digital asset industry, particularly from the United States Securities and Exchange Commission (SEC).
On Monday, June 12, Michaël van de Poppe, a widely-followed crypto expert, weighed in on this matter, pointing out a critical threshold the global crypto market cap must recover to avoid further slumps.
“Mayday, mayday. Total market capitalization is beneath the 200-Week MA and EMA. Needs to get back above $1.04T during this week to avoid further downwards momentum for Crypto.”
– van the Poppe wrote in a tweet.
Market analysts regularly monitor the 200-week moving average (MA) and exponential moving average (EMA) levels due to their significance in assessing long-term trends and market sentiment.
The 200-week MA is a long-term indicator that smoothes out price fluctuations over a span of approximately four years, providing a clear view of the overall trend. Crossing above or below the 200-week MA can signal a major shift in market direction, influencing investor sentiment and triggering significant buying or selling activity.
Global crypto market cap analysis
At press time, the global crypto market cap slightly stood at $1.02 trillion, seeing a slight recovery of 0.24% in the past 24 hours. Over the past week, the markets lost 7.32%, or $52 billion.
As can be noticed from the chart, the sharpest decline occurred on June 10, a day after stock brokerage Robinhood announced it would delist Solana (SOL), Cardano (ADA), and Polygon (MATIC) from its online trading platform, due to “a cloud of uncertainty around these assets” amid the SEC crackdown.
Those three altcoins witnessed particular selling pressure in the past 7 days, plummeting 27.8%, 23.6%, and 27%, respectively.
Meanwhile, last week, the securities regulators filed lawsuits against the world’s two biggest crypto exchanges, Binance and Coinbase, citing a breach of federal securities laws, commingling of investor funds, and listings of unregistered crypto asset securities, among other accusations.
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