As a researcher with a background in finance and experience in following the crypto market closely, I find the recent selloff to be a concerning development. The losses for investors this week, totaling over $100 billion, are a stark reminder of the volatility inherent in the crypto market.
As a crypto investor, I’ve experienced a significant setback in the past few days as the market selloff caused over $100 billion in losses. The crypto market cap, which was at a robust $2.55 trillion earlier this week, has now dropped to $2.45 trillion. This correction was instigated by Bitcoin‘s failure to maintain its upward trajectory due to widespread panic selling brought about by an economically heavy week ahead.
Last week, CoinGape foresaw a crucial turning point for Bitcoin’s price at around $69K, just before it dipped below this level. This shift was influenced by several factors. Firstly, the expiration of crypto derivatives contracts led to increased volatility in the market. Additionally, the US jobs report showed conflicting results: while the unemployment rate rose slightly to 4.0%, the nonfarm payrolls number came in higher than expected. However, the household survey indicated a significant decrease in employment growth, which further fueled negative sentiment among investors.
The dropping value of GameStop’s share price and the meme cryptocurrency GME, fueled by the actions of social media influencer Keith Gill (Roaring Kitty), is negatively impacting the overall crypto market. In just the previous 24 hours, GME suffered a loss of more than 17%, while GameStop’s stock price decreased by 12.01% to reach $24.83 on Monday.
Panic Selloff Ahead FED and BOJ Rate Hike Decision
As a crypto investor, I’ve observed a disappointing 4% decline in Bitcoin’s price over the past 24 hours. The peak reached $70,195, but the market took a downturn and hit a low of $67,325. Currently, BTC is trading at $67,776, signaling a weak demand for buying in both spot and derivatives markets. Furthermore, I’ve noted a 2.22% decrease in CME Bitcoin futures open interest within the same timeframe, which has significantly influenced the upward trend.
As a crypto investor, I’ve noticed that Ethereum (ETH) has taken a hit, with its price dipping by 4% within the last 24 hours. At the moment, ETH is priced at $3,528. The price fluctuations over the past day reached a low of $3,514 and a high of $3,711. Other altcoins have followed suit in response to this downturn in the larger cryptocurrencies.
This week, traders are preparing for several significant events that could impact financial markets. The Consumer Price Index (CPI) inflation data from the US is anticipated, along with decisions regarding interest rate hikes from the US Federal Reserve and the Bank of Japan. In the crypto sector, options and futures traders are taking selling positions in expectation of further declines.
Crypto Liquidations Continue to Rise
According to data from Coinglass, the top cryptocurrencies experienced a market value loss exceeding $170 billion due to recent liquidations. Approximately 66,000 traders underwent liquidation in the last 24 hours. The largest single liquidation order, worth $6.6 million in Ethereum against US Dollars (ETHUSDT), was executed on the crypto exchange Binance.
As a researcher studying the cryptocurrency market, I’ve discovered that approximately $145 million worth of long positions and $25 million worth of short positions were liquidated. This equates to over $80 million in total for Bitcoin and Ethereum alone. The market experienced significant downturn as a result, but this event also presented an opportunity for investors to buy at lower prices, known as “buying the dip.”
Simultaneously, the US Dollar Index (DXY) climbed up to 105.22. The index has shown volatility in the recent past. Additionally, U.S. Treasury yields surged to 4.445%, as investors anticipate the release of new economic data this week which may offer further clarification.
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2024-06-11 11:57