WHY IS#BITCOINDOWN?

Last Friday, the price of Bitcoin experienced a significant drop, going from a value of approximately $72,000 to less than $69,000. This decline resulted in massive liquidations in the cryptocurrency market.

The pullback in Bitcoin price came after a US jobs report for May showed stronger-than-expected results, with 272,000 jobs added. This apparently thwarted expectations of an imminent interest rate cut by the Federal Reserve, leading to a rise in interest rates and the value of the dollar.

Additionally, the drop in GameStop shares, which plunged 40% during a highly anticipated livestream by Roaring Kitty, contributed to the negative mood in the cryptocurrency markets. The meme coin associated with GameStop also suffered a 50% drop from its Friday highs.

In total, the rapid downward market action resulted in liquidations of approximately $850 million in leveraged derivatives trading positions across digital assets2. This volatility highlights the risks inherent in the cryptocurrency market and the influence of macroeconomic and stock market events on digital asset prices.