Here’s Why Bitcoin, ETH, SOL, XRP and SHIB Are Falling Sharply
The crypto market saw a sharp correction, with the value of the global crypto market falling by more than 8% to $2.38 trillion. The crypto market overall has seen over $250 billion in market cap losses in the recent sell-off.
Bitcoin price dropped from $70,978 to $65.2540 due to various reasons including options expiration, historical Bitcoin halving patterns, macroeconomic factors, and technical chart weakness. Bitcoin triggered a sell-off in the crypto market and Ethereum price fell 12%. This caused SOL, XRP, ADA, DOGE, SHIB and other altcoins to drop by 15-30%. Meme coins are among the cryptocurrencies that have experienced the most liquidity in the last 24 hours.
Crypto Market Sell-Off Started With Options Expiry and Was Extended by Other Factors
The crypto market actually started showing signs of weakness ahead of US CPI data earlier this week. The Bitcoin price rise to $72,000 was a range-bound move in response to increased Bitcoin ETF inflow and demand for long positions due to FOMO surrounding the Bitcoin halving. parofix.
Experts are looking for: Benjamin Cowen, Peter BrandtArthur Hayes predicted a decline, possibly a market crash, if the BTC price repeats the similar chart pattern seen in previous Bitcoin halving events and detects the latest Bitcoin ETF listing. Cowen predicted that the BTC price could fall below $60,000 after the halving.
parofix After the options expire, a decrease in BTC and ETH prices is expected. The sell-off in the crypto market started when the options expired at 12:00 UTC, as clearly shown in the chart above. The reasons were lower maximum distress points than transaction prices, dominant selling transactions in the derivatives market due to low volumes and weakening sentiment following hot CPI.
BTC price broke the key support levels at $70,400 and $68,200 and further spurred selling due to geopolitical tensions in the Middle East and negative sentiment following earnings reports from major banks. JPMorgan Chase shares fell 6.47% on Friday.
caused by global macroeconomic events US dollar index (DXY) will climb above 106, the highest level since early November, and US 10-year Treasury yield It rose to 4.585%, its highest level in 6 months. While Bitcoin moved inversely to the DXY and Treasury yields, the rise in both caused the Bitcoin price to drop to $65,000 and triggered the crypto market crash.
Crypto Price Correction Isn’t Over Yet
coin glass Data shows that more than $950 million has been liquidated in the crypto market amid this strong correction. In the last 24 hours, their long positions of $830 million and their short positions of $120 million were liquidated.
More than 297,000 investors were liquidated, and the largest single liquidation order occurred on crypto exchange OKX, when someone traded ETH for USD worth $7.19 million.
QCP Capital He remains structurally bullish but believes deleveraging declines could deepen, especially due to the size of this year’s bull run. He suggests that investors who want to protect themselves from short-term negativities should consider the BTC price on May 31.
Markus ThielenThe CEO of 10x Research said that Bitcoin miners can sell $ 5 billion worth of Bitcoin after the halving event and that whales will lead the sales.
BTC price is currently trading at $67,211 and remains under selling pressure if the price remains below the support and fails to rise above the 20 simple moving average. ETH price is trading at $3,252 at the time of writing.
Also Read: GBTC Outflows Exceed $16 Billion, Disputes CEO’s ‘Balance’ Comment
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Varinder has 10 years of experience in the Fintech industry and has been dedicated to blockchain, crypto and Web3 development for over 5 years. A tech enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles, and articles. Varinder believes in the great potential of future innovative technologies with parofix Media. He currently covers the latest updates and developments in the crypto industry.
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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