Markets
Here’s why Bitcoin, ETH, SOL, XRP and DOGE slide today
The cryptocurrency market witnessed a sharp decline today, with major cryptocurrencies such as Bitcoin, ETH, BNB, SOL, XRP, and DOGE, among others, witnessing a retreat. In particular, the sudden change in sentiment from earlier this week has sparked discussions in the cryptocurrency market about the potential reason behind the sell-off. For context, the market was predicting a new high for Bitcoin price in the near future, while maintaining a bullish outlook for altcoins.
Reasons behind the recent cryptocurrency market selloff
Market sentiment has been bullish lately, as evidenced by recent cryptocurrency price increases this week. However, despite the positive momentum seen throughout the week, sentiment appears to have changed leading up to Friday, triggering a massive sell-off in the cryptocurrency market.
Meanwhile, panic in the market begins soon after US employment data release from the Department of Labor on Friday 7 June. The latest labor market report showed that the United States added 272,000 jobs in May, a massive spike from the previous month and compared to market forecasts.
Even as the unemployment rate rose to 4% last month from 3.9% in April, robust nonfarm payrolls data weighed on investor sentiment. For context, strong non-farm payrolls data have dampened hopes of a potential interest rate cut by the U.S. Federal Reserve, which has sparked concerns in the broader financial sector, not to mention the cryptocurrency market.
Plus, the latest decision from the major meme stock GameStop (GME) selling $175 million of shares also raised concerns in the broader market. On Friday 7 June, GME stock closed with a drop of almost 40%. Next, the title leader meme coins
such as GME, DOGE, SHIB and others also witnessed a sharp decline.
Read also: Why the price of Bitcoin is dropping dramatically today
What’s next?
The recent volatility of cryptocurrency market led to massive liquidations. According to CoinGlass data, a total of 147,330 traders were liquidated in the last 24 hours, with total losses amounting to $411.25 million.
Notably, the largest single liquidation occurred on OKX, involving an ETH-USD-SWAP worth $5.20 million. This wave of liquidations highlights the ongoing market turbulence and associated risks for traders amid rapid price fluctuations.
Meanwhile, the global cryptocurrency market capitalization fell 3.47% to $2.55 trillion on rate cut fears. Bitcoin price slipped 2.81% to $69,275.03, while Ethereum price fell 3.6% to $3,681.7. At the same time, Solana price fell 6% to $162.11, with XRP Price down 5% to $0.4998.
However, despite this, some investors still remain optimistic about a potential rebound Spot Bitcoin ETF in the United States noting a notable influx. Over the course of the week, Spot Bitcoin ETFs in the US saw a net inflow of $1.8 billion, reflecting institutional interest in the flagship cryptocurrency.
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