Crypto Drops $13B as Bitcoin Tests Channel Support

The crypto market declined 0.51% on Monday, reducing total market capitalization by about $13.07 billion to $2.54 trillion. The market value rested near the 0.382 Fibonacci level at $2.53 trillion after a holiday-shortened U.S. session and equity strength overseas. The S&P 500 closed Friday at 7,473.47, up 0.37%, and U.S. markets were closed Monday for Memorial Day ahead of a scheduled reopening on Tuesday. Traders monitored whether flows into U.S. stocks would affect crypto liquidity when trading resumes.

Bitcoin traded at $76,786 and was testing the lower boundary of a parallel ascending channel that has held since March 30. The price sat just above the 0.382 Fibonacci level at $76,030. Daily trading volume for Bitcoin fell steadily from May 20, with Monday showing the lowest volume in that span. A daily close above $78,654 (the 0.236 Fibonacci level) would put the channel high near $82,895 in focus. A decisive close below $76,030 would point to $73,910 and then $71,789 as the next technical levels.

High-beta altcoins showed mixed performance. Zcash led the top-100 decliners, falling about 4.25% to $624 while remaining inside a rising channel that began on April 29. Zcash price compressed toward the channel’s lower boundary above roughly $570. Sell-side volume on Zcash’s drop was lighter than during previous declines. Upside targets for ZEC include $657 and $688, with $799 opening further targets near $861 and $941 if reached.

On regulatory and market-structure developments, executives at Coinbase endorsed the CLARITY Act and described payment-focused stablecoins as presenting lower risk than commercial banks under a proposed GENIUS reserve framework. Security incidents also affected market accounts: attackers drained about $3.2 million from 86 Gnosis Safe wallets through a third-party SquidRouterModule. The Squid project identified the exploited contract as not part of its codebase. Separately, the derivatives platform Hyperliquid launched canonical outcome markets tied to off-chain events, with validators voting on each market’s deployment and settlement.

Market participants continued to watch U.S. equity flows and trading volume for signs of further capital rotation between stocks and cryptocurrencies when U.S. markets reopen.