Crypto Market Correction: Why BTC, ETH, SOL, XRP, Other Altcoins Saw $100B Liquidation

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Why BTC, ETH, SOL, XRP, Other Altcoins Saw $100B Liquidation – Crypto News

Published

2 years ago

June 11, 2024

Dripp

Crypto market selloffs this week saw investors lose over $100 billion in assets, as crypto market cap tumbled from $2.55 trillion earlier this week to $2.45 trillion today. The market correction was triggered by Bitcoin losing upside momentum amid panic selling due to a heavy macroeconomic week ahead.

CoinGape accurately predicted a make-or-break moment for Bitcoin price last week before BTC price slipped below $69K. Crypto derivatives expiry and mixed US jobs data, with the unemployment rate climbing to 4.0% and an upside surprise in the nonfarm payrolls, caused negative sentiments. On the contrary, the household survey signaled a sharp decline in job growth.

The decline in GameStop’s share price and meme coin GME is also hurting the mood of the crypto market as Keith Gill, aka Roaring Kitty, continues to drive them. GameStop (GME) meme coin has tumbled over 17% in the last 24 hours. Whereas, GameStop stock fell 12.01% to $24.83 on Monday.

Panic Selloff Ahead FED and BOJ Rate Hike Decision

Bitcoin price dropped 4% in the last 24 hours, from a 24-hour high of $70,195 to a low of 67,325. At the time of writing, BTC price trades at $67,776 and indicates a low buying interest in spot and derivatives markets. CME Bitcoin futures open interest drop by 2.22% in the last 24 hours has severely impacted the upside trajectory.

Ethereum (ETH) price also dropped 4% in the past 24 hours, with the price currently trading at $3,528. The 24-hour low and high are $3,514 and $3,711, respectively. Other altcoins also tumbled in response to the drop in larger cryptocurrencies.

Traders brace for CPI inflation, US Federal rate hike decision, and Bank of Japan rate hike decision this week. Options and futures traders are selling to drive further selloff across the crypto market.

Crypto Liquidations Continue to Rise

As per Coinglass data, top cryptocurrencies saw over $170 billion in market value lost in the recent liquidations. Over 66K traders liquidated in the last 24 hours, with the largest single liquidation order of ETHUSDT valued at $6.60 million happened on crypto exchange Binance.

Nearly $145 million longs and $25 million shorts were liquidated, with Bitcoin and Ethereum in total recorded over $80 million liquidation. This caused the crypto market to bleed, but it also offered a buy-the-dip opportunity.

Meanwhile, the US Dollar Index (DXY) increased to 105.22. It has continued to remain volatile in the last few weeks. Moreover, U.S. Treasury yields also rose to 4.445 as investors look for fresh economic data due this week that could provide more insights.

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