As a seasoned financial analyst with extensive experience in the crypto market, I’ve witnessed the bearish trend take over in recent days, causing a significant drop in the overall market cap from $2.35 trillion to $2.26 trillion. The selling pressure has been relentless, with investors losing a staggering $160 billion in net wealth over the past week.
As a researcher studying the cryptocurrency market, I’ve observed a shift in market dynamics over the past week. Bulls have been gradually yielding ground to bears, resulting in a significant decrease in market capitalization from $2.35 trillion to $2.26 trillion within the last 24 hours. This downward trend has caused crypto investors to experience a net loss of approximately $160 billion over the past week. The sentiment among investors has also shifted, with the market now classified as “neutral” based on current trends. Moreover, the fear and greed index for cryptocurrencies, which measures investor emotion, has decreased from 76 (extreme greed) in previous months to 51 (neutral) on June 24.
The price of Bitcoin takes a significant drop of over 3% to reach a 24-hour low at $62,258. This decline comes amid persistent selling and apprehension among traders. Some investors anticipate the Bitcoin price to fall below its previous support level of $61,000, which it touched in April and May. The bearish sentiment is heightened as both spot and derivative traders closely monitor U.S. PCE inflation data and monthly options expiry.
The cost of Ethereum decreased by approximately 4% within the past 24 hours, causing its monthly decline to surpass 10%. At present, ETH is being exchanged at around $3,366. Notably, trading volume has escalated by nearly 73%, indicating a surge in investors offloading their assets.
In the previous day, there was a significant drop of around 3-6% for cryptocurrencies such as Solana, XRP, Toncoin, Dogecoin, Cardano, and Shiba Inu. The market has seen an intensified selling pressure, particularly in meme coins and artificial intelligence (AI) coins, causing a correction within the crypto sector. Notably, dogwifhat (WIF) experienced a more substantial decline of approximately 14% over the same timeframe.
Crypto Market Nears Crash As Traders Brace For Macro Events
The data from Coinglass reveals that a total of $170 million worth of popular cryptocurrencies was liquidated today. Approximately $127 million of this occurred within the past 12 hours. Over 70,000 traders experienced liquidation events, and the largest single order, valued at $10 million, took place on the BitMEX exchange when a large trader sold XBTUSD.
Approximately $80 million worth of investments in Bitcoin, Ethereum, Solana, Dogecoin, Shiba Inu, Chainlink, Uniswap, Filecoin, and Pepe the Frog have been made in long positions over the past 4 hours as market uncertainty prevails. This significant influx has contributed to today’s crypto market downturn.
As a researcher looking back on recent events, I’d recast the warning from CoinGape a week ago as follows: I’ve been closely monitoring the Bitcoin market and took note of CoinGape’s caution about a possible price crash approaching the $57k mark by month’s end. With several significant macroeconomic factors at play, investors are on high alert. Among these events are the US Personal Consumption Expenditures (PCE) report and monthly options expiry due on Friday. Both are anticipated to trigger sharp corrections before their respective dates. Furthermore, there are several key macro events lined up in the first week of July, including the ISM manufacturing data, Fed Chair Powell’s speech, the Federal Open Market Committee (FOMC) meeting release, and jobs and unemployment rate data. All these developments could influence the market dynamics and potentially impact Bitcoin’s price trajectory.
As a researcher studying the cryptocurrency market, I’ve discovered that approximately $6.72 billion worth of Bitcoin options with over 105,000 contracts are set to expire on June 28th, according to Deribit, the largest derivatives exchange. With a put-call ratio of 0.52 and a max pain point at $57,000, it appears that the Bitcoin price may experience continued downward pressure.
Analyst Predicts Bitcoin Price Drop To $50K
Markus Thielen, the founder of crypto research firm 10x Research, believes now is the moment for tough calls as the price behavior of Bitcoin seems weak, with ongoing withdrawals from Bitcoin ETFs. He forecasts that Bitcoin might plummet to $50,000 because of the double top pattern development. The crucial support level lies at $60,000.
#Bitcoin Double Top? Is It Time to Panic? How Low Prices Could Plunge?
— 10x Research (@10x_Research) June 24, 2024
Based on recent BTC on-chain data and the analyses of various experts, there are indications that the price of Bitcoin may experience weakness in the near future. There is growing apprehension about significant sell-offs instigated by less experienced investors, which could potentially drive the value of Bitcoin downward.
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2024-06-24 10:30