In a staggering market selloff, the cryptocurrency market cap has plummeted from $2.35 trillion to $2.26 trillion in just 24 hours. Investors witnessed a breathtaking drop as $160 billion in net wealth evaporated over the course of a week. Leading the downturn, Bitcoin’s price tumbled over 3%, diving to a recent low of $62,258.
The shockwaves radiated rapidly across the board as Ethereum also recorded a 2% dip in value within the same timeframe, with its price now hovering around the $3,366 mark. Similarly, prominent altcoins including Solana, XRP, Toncoin, Dogecoin, Cardano, and Shiba Inu suffered losses ranging from 3-6% during the same period.
Thursday’s trading session alone saw $170 million worth of popular cryptocurrencies liquidated, affecting approximately 70,000 traders. Such a significant number of liquidations in a single day serves as a stark indicator of the market’s volatility and the high-risk environment facing traders at the moment.
Further adding to the climate of uncertainty, Deribits, a leading derivatives exchange, is bracing for over 105k BTC options to expire on June 28. These options hold a notional value of $6.72 billion, and their expiration could lead to further fluctuations in Bitcoin’s price.
Market analysts and strategists are keeping a close eye on this development, as Markus Thielen, founder of 10x Research, cautions that Bitcoin could potentially fall to the $50,000 level. Thielen points to a double top pattern that has emerged in the chart, signaling a possible bearish future for the leading cryptocurrency.
In light of recent events, industry experts are airing on the side of caution, predicting weaker Bitcoin price action in the upcoming weeks. Concerns around large-scale selloffs could push the price down even further as the market grapples with these bearish trends. Investors and traders are advised to monitor the situation closely as pivotal data such as the forthcoming PCE and the impending options expiry could prove to be critical influencers of market behavior in the near term.
