Bitcoin
See Why Bitcoin, ETH, SOL, XRP, DOGE Slip Today
Crypto Market Settlement: The cryptocurrency sector witnessed a sharp decline today, with top cryptocurrencies like Bitcoin, ETH, BNB, SOL, XRP, and DOGE, among others, recording a pullback. Meanwhile, the sudden shift in sentiment earlier this week sparked discussions in the crypto market about the potential reason behind the sell-off.
For context, the market was expecting a further rally for the price of Bitcoin in the near future earlier this week, while maintaining a bullish outlook for altcoins.
Reasons behind the recent crypto market sell-off
Market sentiment has been bullish lately, as witnessed by the recent surges in cryptocurrency prices this week. However, despite the positive momentum seen throughout the week, sentiment appears to have changed by Friday, triggering a massive sell-off in the crypto market.
However, panic in the market begins soon after the US employment data released by the Department of Labor on Friday, June 7th. The latest labor market report showed that the US added 272,000 jobs in May, a huge increase from the previous month, much like market forecasts.
While the unemployment rate also rose to 4% last month from 3.9% in April, robust data on non-farm wages weighed on investor sentiment. For context, strong non-farm payrolls data dampened hopes about a potential interest rate cut by the US Federal Reserve, which raised concerns in the broader financial sector, let alone the crypto market.
Plus, the latest decision from the top meme stock GameStop (GME) selling $175 million worth of shares also raised concerns in the broader market. GME shares closed down nearly 40% on Friday, June 7th. meme coins
such as GME, DOGE, SHIB and others also witnessed a sharp decline.
Read too: Why Bitcoin Price Is Falling Drastically Today
What is the next?
The recent volatility in cryptocurrency market led to massive liquidations. According to data from CoinGlass, a total of 147,330 traders were liquidated in the last 24 hours, with total losses worth $411.25 million.
Notably, the most substantial single liquidation occurred on OKX, involving an ETH-USD-SWAP worth $5.20 million. This wave of liquidations highlights the ongoing market turbulence and the associated risks for traders amid rapid price fluctuations.
Meanwhile, the global crypto market value fell 3.47% to $2.55 trillion amid concerns about rate cuts. Bitcoin price fell 2.81% to $69,275.03, while Ethereum Price fell 3.6% to $3,681.7. Simultaneously, Solana Price fell 6% to US$162.11, with XRP Price falling 5% to $0.4998.
However, despite this, some investors remain optimistic about a potential recovery, with the US Spot Bitcoin ETF noting a significant influx. During the current week, US Spot Bitcoin ETFs witnessed a net inflow of $1.8 billion, reflecting institutional interest in the leading cryptocurrency.
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