Here’s Why Bitcoin, ETH, SOL, XRP, and DOGE Slipped Today
The crypto market witnessed a sharp decline today; Major cryptocurrencies such as Bitcoin, ETH, BNB, SOL, XRP and DOGE, among others, also witnessed a pullback. The sudden change in sentiment, especially from earlier this week, has led to discussions regarding the potential reason behind the sell-off in the crypto market. In context, the market is expecting a new high for Bitcoin price in the near future while maintaining a bullish outlook for altcoins.
Reasons Behind the Recent Crypto Market Sell-off
Market sentiment has been on the rise lately, as evidenced by recent increases in crypto prices this week. However, despite the positive momentum recorded throughout the week, sentiment appears to have changed by Friday, triggering a massive sell-off in the crypto market.
Meanwhile, panic in the market begins right after the US Jobs Data released by the Labor Department on Friday, June 7. The latest labor market report showed the U.S. added 272,000 jobs in May. From market forecasts.
Although the unemployment rate also rose to 4% last month from 3.9% in April, strong nonfarm payrolls data weighed on investor sentiment. For context, strong nonfarm payrolls data dampened hopes for a potential interest rate cut by the US Federal Reserve, sparking concerns in the broader financial sector, let alone the crypto market.
Additionally, the recent decision by leading meme stock GameStop (GME) to sell $175 million in shares has also raised concerns in the broader market. GME shares closed down nearly 40% on Friday, June 7. Following this, leading meme cryptocurrencies such as GME, DOGE, SHIB and others also witnessed a sharp decline.
Also Read: Why Is Bitcoin Price Falling Sharply Today?
What’s next?
Recent volatility in the cryptocurrency market has led to massive liquidations. According to CoinGlass data, a total of 147,330 traders were liquidated in the last 24 hours and the total loss reached $411.25 million.
Notably, the single most significant liquidation occurred on OKX, which included $5.20 million worth of ETH-USD-SWAP. This wave of liquidations highlights the ongoing market turbulence and associated risks for traders amid rapid price swings.
Meanwhile, the global crypto market cap fell 3.47% to $2.55 trillion due to interest rate cut concerns. While Bitcoin price decreased by 2.81% to $69,275.03, Ethereum price decreased by 3.6% to $3,681.7. Simultaneously, the solana price decreased by 6% to $162.11, and the XRP price decreased by 5% to $0.4998.
But despite this, some investors still remain optimistic about a potential recovery, with the US Spot Bitcoin ETF noting a significant influx. During the ongoing week, US Spot Bitcoin ETFs witnessed net inflows of $1.8 billion, reflecting institutional interest in the flagship crypto.
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A seasoned professional with 3 years of experience in the financial market, Rupam has honed his skills as a meticulous research analyst and insightful journalist. She enjoys exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond traditional boundaries. His contributions include breaking news, examining AI-related developments, providing real-time crypto market updates, and providing insightful economic news. Rupam’s journey is marked by his passion to demystify the intricacies of finance and deliver impactful stories that will resonate with diverse audiences.
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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