Why Is Crypto Market Down Today?
The cryptocurrency market saw significant losses, with its market cap dropping from $2.44 trillion to $2.33 trillion in the last 24 hours. Coinglass reported nearly $500 million in liquidations, primarily affecting Ethereum (ETH), Bitcoin (BTC), Dogecoin (DOGE), Shiba Inu (SHIB), and Solana (SOL).
### Reasons for the Decline
Bitcoin's loss of momentum, influenced by macroeconomic issues, miner capitulation, Bitcoin ETF outflows, and reduced stablecoin issuances, triggered the selloff.
Over 173,000 traders were liquidated, with Binance recording the largest single liquidation of ETH worth $6.44 million. Macroeconomic and geopolitical factors, such as the Fed's interest rate policies and the Bank of Japan's stance, also contributed to the slump. The US Dollar Index rose to 105.4, and U.S. Treasury yields increased to 4.298%.
### Bitcoin's Performance and ETF Outflows
Bitcoin ETFs saw $146 million in net outflows, reflecting changing investor sentiment. Over 100,000 BTC options, valued at $6.58 billion, are set to expire on June 28, potentially keeping Bitcoin prices under pressure.
BTC is trading at $65,597, down 1% in 24 hours and 3% for the week, with trading volume more than doubling. Experts suggest that current geopolitical conditions and the upcoming election year make Bitcoin and gold attractive investments for diversification.
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