Crypto Market Crash: Here's Why Bitcoin, Ethereum, XRP, SHIB Are Falling Today
The crypto market is experiencing a significant downturn. In the past 24 hours, the total market cap has dropped from $2.35 trillion to $2.24 trillion. This has resulted in a loss of $180 billion in investor wealth over the past week as market sentiment shifted to "Neutral". The Crypto Market Fear and Greed Index has also dropped from 76 (extreme greed) last month to 51 (neutral) on June 24.
Bitcoin Price Drop
The price of Bitcoin has plunged more than 4% to a 24-hour low of $60,858 due to continued selling pressure and market uncertainty. Traders are watching closely to see if BTC price will fall below the crucial support level of $61,000 it hit earlier in the year. BTC spot and derivatives traders are particularly bearish, focusing on U.S. PCE inflation data and the upcoming monthly options expiry.
Ethereum and Other Cryptocurrencies
Similarly, Ethereum (ETH) has seen a price drop of 4% in the last 24 hours, marking a monthly decrease of over 10%. Currently, ETH is trading at $3,366 with a 73% increase in trading volume as investors liquidate their holdings.
Various other altcoins including Solana, XRP, Toncoin, Dogecoin, Cardano, and Shiba Inu have experienced declines ranging from 3-6% in the past 24 hours. Meme coins and AI coins, including dogwifhat (WIF), have seen a massive selloff.
Massive Liquidations
The crypto market is nearing a crash as traders prepare for major macroeconomic events. Data from Coinglass shows that popular cryptocurrencies have recorded liquidations totaling $170 million today and $280 million in the past 12 hours. Over 90,000 traders were liquidated, with the largest single liquidation happening on BitMEX, accounting for $10 million.
Over $100 million in long positions in BTC, ETH, SOL, DOGE, NOT, ORDI, PEOPLE, WIF, PEPE have been liquidated in just the last 4 hours due to market uncertainty, causing additional downward pressure.
Looking Ahead
A week ago, CoinGape warned about a potential Bitcoin price crash to the $57k level due to key macroeconomic events and options expiry. Investors are bracing for U.S. PCE data and the monthly options expiry on Friday, which they expect to cause a market correction. Additional events such as the ISM manufacturing data, Fed Chair Powell's speech, the FOMC meeting release, and jobs and unemployment rate data are expected in the first week of July.
Over 105K BTC options with a notional value of $6.72 billion are set to expire on June 28th, according to Deribit, the largest derivatives exchange. With a put-call ratio of 0.52 and the maximum pain point at $57,000, Bitcoin price is likely to remain under selling pressure.
Expert Insights
Markus Thielen, founder of 10x Research, advises making tough decisions as BTC price action looks weak amid continuous outflows from spot Bitcoin ETFs. He predicts Bitcoin could fall to $50,000 due to a double top pattern formation, with key support at $60,000.
On-chain data and analysts warn of weaker BTC price action in the coming weeks. Concerns around large selloffs by "dumb money" have increased, which could push BTC prices even lower.
