$120 Billion Was Liquidated As Prices of BTC, ETH, XRP and Altcoins Fall
The cryptocurrency market experienced a sharp correction in the early US trading hours. bitcoin (BTC), Ethereum (ETH) and ripple (XRP) are facing significant declines. The downward trend led to the liquidation of $120 billion, resulting in a 2.5% decline in overall market capitalization, now at $2.52 trillion.
BTC, ETH and XRP Lead the Decline in the Crypto Market
Bitcoin’s price traded at $67,241, down over 3%. Similarly, Ethereum and Fluctuation XRP also fell by 1.73% to $0.5188. This widespread downturn affected the broader cryptocurrency market, leading to increased volatility.
On-chain metrics show significant inflows of cryptocurrencies to exchanges. This trend suggests that more investors are preparing to sell their assets, a common precursor to market corrections. Increased supply on exchanges often causes prices to fall, exacerbating the existing downward trend.
Declining participation and activity further underscores the health of the crypto market. Metrics such as active addresses, transaction volumes, and network activity are all showing signs of decline. This decreasing activity indicates that investor interest and participation in the crypto ecosystem is decreasing.
Regulatory News and Inflation Data Hit the Crypto Market
Additionally, the Federal Open Market Committee’s statement (FOMC) The minutes contributed to the cautious approach of traders. Many Fed officials have expressed concerns about inflationary pressures, suggesting that this could delay or reduce interest rate cuts expected this year. This cautious stance increased the negative atmosphere in the crypto market.
Regulatory news also contributed to the recent market downturn. SEC He took a conservative stance on the crypto bill recently approved by the House of Representatives. SEC Chairman Gary Gensler emphasized that the agency is ready for dialogue as it continues to enforce laws that ensure token operators provide required disclosures to investors.
The pullback in the crypto market can be attributed to the S&P Global Purchasing Managers Index (PMI) report. The report stated that the US economy reached the fastest growth rate in the last two years. This strong economic growth has led investors to change their expectations for interest rate cuts, putting additional pressure on Bitcoin and other digital currencies.
So read: Bitcoin Whales Fueled the $70K BTC Rally by Accumulating 20K BTC
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Maxwell is a crypto-economic analyst and Blockchain enthusiast who is passionate about helping people understand the potential of decentralized technology. I write extensively on topics like blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its effects on economic freedom and social well-being.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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