The cryptocurrency market has seen landslide losses as a result of 2024’s second-worst weekly fall.
This is the largest decrease since April and is linked to the following factors: uncertainty around the monetary policy of the U.S. Federal Reserve, dwindling demand for Bitcoin exchange-traded funds, and a sluggish appetite for digital assets.
The price Bitcoin fell to $61K, below its one-month low, by over 5%. The leading coin by market value has been severely damaged by a six-day withdrawal spree from US ETFs devoted to the digital currency.
With 90,987 dealers liquidated in the last day, the total liquidation value came to $283.23 million.
The collapse of the cryptocurrency market is correlated with doubts about the Federal Reserve’s capacity to quickly cut interest rates after a high that lasted for two decades. There have been some particularly notable drops: the longest weekly declines since last year and 2022, respectively, have occurred in Ether and Solana.
With a 4.54% decline in the last day, the worth of the global cryptocurrency market is approximately $2.24 trillion. In the midst of significant sell-offs in the altcoin market, Bitcoin’s dominance has decreased to 53.85%, a fall of 0.19%.
At $3,312, Ethereum is down 8% from the previous week and roughly 5% from the day before. That being said, there have been indications lately of significant long-term holder accumulation throughout the price decrease.
Over the last six trading days, there have also been a number of withdrawals from exchange-traded funds (ETFs) that track Bitcoin, according to Farside statistics. The largest outflow of the six days was on June 13, totaling $226.2 million.
The second-highest cryptocurrency, Ether, is the direct investment target for the first US ETFs that fund managers intend to launch, but this trend is still continuing. On the other hand, Solana has lately gained appeal with a number of hedge funds that deal with digital assets.
This quarter, traditional assets such as gold, bonds, and stocks have beaten Bitcoin, despite the cryptocurrency reaching a record high of $73,798 in March. We are keeping an eye out for potential support at the 200-day moving average, which is presently at $57,500.
Altcoin Crash
Important cryptocurrencies like Ripple (XRP), Polkadot (DOT), and Solana (SOL) are reporting daily drops between 5% and 12%, suggesting that the altcoin market as a whole is also struggling.
- Shiba Inu, a meme coin, has experienced significant volatility in the previous week, falling about 20% in the last week and roughly 9% in the last day.
- Just before the price of the cryptocurrency dropped below $61,000, there has been a pause in Bitcoin whale transactions over the past few days.
- There were 9,923 Bitcoin whale transactions (those worth more than $100,000) in total over the preceding two days on June 23, according to data from Santiment.
- Comparing this to the 17,091 transactions recorded in the two days previous, there has been a 42% drop.
- Before the year began, traders had been optimistic about digital assets because they saw a dovish move from the Federal Reserve as inflation declined and a potential shift in Washington politics that would indicate more leniency from US authorities.
