🔥🔥Secret Reasons for the Recent Crypto Market Dump🔥🔥
The #cryptocurrency market experienced a sharp downturn, with #Bitcoin dropping from $70,000 to near $64,000 overnight. This decline impacted altcoins, which fell by 15%-40%.
Here are the key reasons behind this sudden market dip:
🪙 1. Miner Capitulation
Lower Miner Revenues: Miner revenues have decreased by 55%, forcing miners to sell more Bitcoin to cover costs.Increased Transfers to Exchanges: More Bitcoin is being moved from miners' wallets to exchanges, indicating increased selling activity and driving prices down.
💵 2. Lack of New #USDT and #USDC
IssuanceStablecoin Market Stagnation: There's been no new issuance of stablecoins like USDT and USDC, meaning less new money is entering the crypto market. This reduces liquidity and increases price volatility.
📉 3. Outflows from #ETF Funds
Significant Withdrawals: Major ETFs like Fidelity and Grayscale are experiencing significant outflows. For instance, Fidelity saw an outflow of over 1,384 #BTC on June 17th, adding selling pressure to the market.
😟 4. Fear Among Short-Term Investors
Investor Anxiety: Short-term investors (holding Bitcoin for less than 155 days) are selling off due to these pressures, fearing further price drops.
📊 5. Spent Output Age Bands (%)
Selling Pressure from Older Coins: 40% of the Bitcoins being sent are from the 3-6 month holding range, 20% from the 6-12 month range, with the remaining portion mixed. These transactions contribute to the selling pressure.
These factors combined to create a perfect storm, leading to the significant market drop.
Source: CryptoQuant