Altcoins
$120 Billion Liquidated as BTC, ETH, XRP, Altcoins Prices Drop
The cryptocurrency market saw a sharp correction in the early hours of the United States, with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are all facing significant declines. The bearish trend has led to the liquidation of $120 billion, which has resulted in a 2.5% decline in the overall market cap, which now stands at $2.52 trillion.
BTC, ETH and XRP lead the decline in the cryptocurrency market
Bitcoin price fell more than 3%, trading at $67,241. Similarly, Ethereum and Ripple XRP followed suit, dropping 1.73% to $0.5188. This widespread slowdown affected the broader cryptocurrency market, leading to increased volatility.
On-chain indicators point to a significant inflow of cryptocurrencies to exchanges. This trend suggests that more investors are preparing to sell their holdings, a common warning sign of market corrections. Increased supply on exchanges often translates into lower prices, exacerbating the current bearish sentiment.
The decline in engagement and activity further underscores the health of the cryptocurrency market. Metrics such as active addresses, transaction volumes, and network activity are all showing signs of decline. This reduced activity indicates a decrease in investor interest and engagement within the cryptocurrency ecosystem.
Regulatory News, Inflation Data Hit Cryptocurrency Market
In addition, the publication of the Federal Open Market Committee report (
FOMC Committee) The minutes contributed to traders’ cautious approach. Many Fed officials expressed concerns about inflationary pressures, suggesting that this could delay or reduce the number of rate cuts expected this year. This cautious stance added to the negative sentiment in the cryptocurrency market.
Regulatory news has also contributed to the recent market downturn. The SEC has maintained a conservative stance on the cryptocurrency bill recently approved by the House of Representatives. SEC Chairman Gary Gensler stressed the agency’s willingness to engage in dialogue while continuing to enforce laws that ensure token operators provide necessary information to investors.
The decline in the cryptocurrency market can be attributed to the S&P Global Purchasing Managers’ Index (PMI) report. The report said the U.S. economy grew at its fastest pace in two years. This robust economic growth has led traders to shift their expectations for interest rate cuts, putting additional pressure on Bitcoin and other digital currencies.
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