As an experienced financial analyst, I’m deeply concerned about the current state of the crypto market. In the last 24 hours, we’ve seen a massive selloff that has caused the market cap to plummet from $2.44 trillion to $2.33 trillion, with nearly $500 million worth of crypto being liquidated. Ethereum, Bitcoin, Dogecoin, Shiba Inu, and Solana led the way in this regard.
As a researcher studying the cryptocurrency market, I’ve observed a significant downturn over the past 24 hours. The total market capitalization has dropped from $2.44 trillion to $2.33 trillion, resulting in billions of dollars in losses for investors. According to Coinglass data, approximately $500 million worth of crypto have been liquidated during this period. Among the top cryptos leading this trend are Ethereum (ETH), Bitcoin (BTC), Dogecoin (DOGE), Shiba Inu (SHIB), and Solana (SOL), in that order.
What’s Causing Crypto Market to Decline?
As a crypto investor, I’ve observed that the recent market selloff in cryptocurrencies can be attributed to several factors that affected Bitcoin’s upward momentum. Macroeconomic headwinds, such as inflation concerns and geopolitical tensions, have weighed heavily on investor sentiment. Additionally, miners have been selling off their holdings due to the rising costs of production and decreasing profitability. The lack of new issuance from stablecoins has also contributed to the market downturn, as these digital assets have played a crucial role in stabilizing the crypto market during times of volatility.
Approximately $500 million worth of well-known cryptocurrencies were disposed of in the past 24 hours, according to Coinglass. Over 173,000 traders carried out these disposals, with the largest individual liquidation order on Binance being a sale of roughly $6.44 million in Ethereum.
Macro and geopolitical elements are driving the recent downturn, despite moderating US consumer price index (CPI) and producer price index (PPI) inflation figures. The Federal Reserve officials remain committed to their plan of implementing only one rate reduction this year. Meanwhile, Bank of Japan Governor Kazuo Ueda holds a hawkish stance on increasing interest rates once more during the upcoming July meeting.
I have observed an uptick in the US Dollar Index (DXY), which now stands at 105.4 as of today. The index has shown volatility over the past few days. Additionally, U.S. Treasury yields have risen to 4.298%, with investors eagerly anticipating new market signals this week that could potentially clarify future market trends.
Recently, there have been three straight withdrawals from Bitcoin spot ETFs. On Monday alone, investors withdrew $146 million from these funds. This substantial move suggests a change in investor attitude towards Bitcoin.
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Bitcoin Price Dropping Towards $60K
According to CoinGape’s latest report, approximately 100,000 Bitcoin options with a total notional value of around $6.58 billion are approaching their expiration date on June 28, as indicated by the leading derivatives exchange Deribit. The put-call ratio, which stands at 0.50, suggests that there is slightly more demand for putting (betting on a decline in price) than calling (betting on an increase). Additionally, the max pain point, currently set at $55,000, implies that Bitcoin’s price may experience further downward pressure until then.
The current price of Bitcoin is at $65,597, representing a 1% decrease over the past 24 hours and a 3% decline during the past week. The lowest and highest prices in the last day were recorded as $64,597 and $67,252, respectively. Notably, trading volume has experienced a significant surge of over 100%, suggesting heightened activity among investors.
Experts, including Charlie Morris of ByteTree and Alexander Chartres from Ruffer, argue that election years and present geopolitical circumstances make Bitcoin and gold attractive investments for diversification purposes.
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2024-06-18 12:52