Altcoins
Here’s why Bitcoin, Ethereum and Altcoins are falling today
The crypto market has seen the bears gradually take over the bulls, with the market capitalization increasing from $2.35 trillion to $2.26 trillion in the last 24 hours. Crypto investors lost $160 billion in net wealth in a week as market sentiment turned “neutral” today. The crypto market’s Fear and Greed Index continues to decline from 76 (extreme greed) last month to 51 (neutral) on June 24.
Bitcoin price plunges more than 3% to a 24-hour low of $62,258 amid continued selling pressure and uncertainty. The traders eye BTC Price to fall below $61,000, the support level it also reached in April and May. BTC spot and derivatives traders appear extremely bearish due to the focus on US PCE inflation data and monthly options expiration.
The price of Ethereum also fell by 4% in the last 24 hours, bringing the monthly decline to over 10%. ETH Price is currently trading at $3,366 with trading volume up 73% as investors liquidated their holdings.
Altcoins such as Solana, Meme coins and AI coins are experiencing a massive sell-off, leading to a correction in the crypto market. dogwifhat (WIF) leads with a 14% decline over the past 24 hours.
Crypto market on the verge of collapse as traders prepare for macroeconomic events
Change machine data indicates that popular cryptocurrencies saw a liquidation of $170 million today, including $127 million in the last 12 hours. More than 70,000 traders have been liquidated, with the largest liquidation order taking place on crypto exchange BitMEX after a whale sold XBTUSD worth $10 million.
Over $80 million in long positions on BTC, ETH, SOL, DOGE, NOT, ORDI, PEOPLE, WIF, PEPE in the last 4 hours due to market uncertainty. This caused a bloodletting in the crypto market today.
A week ago, CoinGape warned against BTC price fall potentially at the $57,000 level towards the end of the month due to key macroeconomic events and options expiration. Investors are bracing for the expiration of U.S. PCE and monthly options on Friday, expecting a sharp correction before then, with the Fed considering only one rate cut this year. Additionally, key macroeconomic events such as ISM manufacturing data, Fed Chair Powell’s speech, FOMC meeting release, and employment and unemployment rate data are expected in the first week of July.
More than 105,000 BTC options with a notional value of $6.72 billion are set to expire on June 28, according to the largest derivatives exchange Deribit. With a put-call ratio of 0.52 and a maximum sweet spot at $57,000, Bitcoin price is more likely to remain under selling pressure.
Source: Déribit
Read also: Big capital rotation into Altcoins will begin in two weeks, analyst predicts
Analyst predicts Bitcoin price drop to $50,000
Markus Thielen, founder of crypto research firm 10x Research, said it is time to make tough decisions as BTC price action appears weak amid continued outflows from spot Bitcoin ETFs. He predicts that Bitcoin could fall to $50,000 due to the formation of a double top pattern. The key support level is $60,000.
BTC on-chain data and other analysts also pointed to weaker BTC price action in the coming weeks. Concerns have been growing over dummy currency sell-offs, which could push BTC much lower.
Read also: ETH Price Reversal Soon as Ethereum ETF Coming in Two Weeks