Markets
Why is the crypto market bearish today? BTC drop to $55,000 imminent?
The crypto market continues to bleed and cause investors to lose billions as the market capitalization drops from $2.44 billion to $2.33 billion in the last 24 hours. Data from Coinglass indicates that nearly $500 million worth of crypto has been liquidated, with Ethereum (ETH), Bitcoin (BTC), Dogecoin (DOGE), Shiba Inu (SHIB), and Solana (SOL) leading the liquidation (in descending order). .
What is causing the crypto market to decline?
The crypto market sell-off was triggered by Bitcoin’s loss of positive momentum due to factors such as macroeconomics, mining capitulationBitcoin ETF outflows and lack of issuance of new stablecoins.
Popular cryptocurrencies worth $500 million have been liquidated in the last 24 hours, as per Coinglass. More than 173,000 traders were liquidated in the last 24 hours, with the largest single liquidation order on cryptocurrency exchange Binance when someone sold ETH valued at $6.44 million
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Macro and geopolitical factors are behind the latest crisis. Despite the US cooling CPI and PPI inflation data, Fed officials adhere to the FOMC’s decision for a one-time rate cut this year. Bank of Japan Governor Kazuo Ueda is aggressive in raising interest rates again at the July meeting.
As a result, the US Dollar Index (DXY) increased to 105.4 today, continuing to remain volatile over the past few days. Furthermore, US Treasury Yields also rose to 4.298% as investors look for new signals, expected this week, that could provide more information about the market’s direction.
Meanwhile, the spot Bitcoin ETF has recorded 3 consecutive outflows. On Monday, the net outflow of Spot Bitcoin ETF was US$146 million. This significant movement indicates a change in sentiment among investors.
Read too: Binance Key Announcement for WIF, BONK, FLOKI, NOT, ZK and 6 Other Cryptocurrencies
Bitcoin Price Dropping to $60K
As reported by CoinGape, more than 100 thousand BTC Options of $6.58 billion notional value is set to expire on June 28, according to major derivatives exchange Deribit. With a put-call ratio of 0.50 and the maximum pain point at $55,000, this indicates that Bitcoin price may remain under selling pressure until then.
BTC Price it currently trades at $65,597, down 1% in the last 24 hours and 3% in a week. The 24-hour low and high are the 24-hour high of $64,597 and $67,252. However, trading volume has increased by more than 100% in the last 24 hours, indicating increased interest among traders.
However, experts say that the election year and current geopolitical conditions make both Bitcoin and gold desirable for investors. Charlie Morrischief investment officer and founder of ByteTree, and Alexandre Chartresfund manager at Ruffer, said investors need to buy Bitcoin to diversify.
Read too: Ripple CEO Hints at Massive Pro-Crypto Funding in US Presidential Election