Bitcoin has fallen below $65,000 to its lowest price in a month, while the recently launched zkSync token was the biggest loser in the top 100 coins by market capitalization.
The total market capitalization of the entire cryptocurrency space tumbled from $2.55 trillion to $2.48 trillion, a decrease of 2.5%, according to CoinGecko.
Leading cryptocurrency Bitcoin fell to $64,548 in the past 24 hours, thus recording its lowest level in the past one month. Last week, Bitcoin fell to $65,240 after longs worth $150 million were liquidated. But as of Tuesday morning, the Bitcoin price has stabilized around the $65,600 mark.
Crypto heavyweights like Ethereum, BNB, and Solana saw a downtick of 3%, 1.5%, and 5%, respectively.
Bitcoin, Ethereum Prices Dive as Crypto Liquidations Near $500 Million
As the prices for Bitcoin, Ethereum, and other cryptocurrencies stayed in the red late Monday, investors saw nearly half a billion dollars in positions liquidated in 24 hours. Of $489 million in liquidations, the vast majority—over $432 million—slammed long positions, according to aggregated crypto market data from CoinGlass. Most of the day's liquidations came in the past 12 hours, as the price of Bitcoin fell as low as $64,548 late Monday and the price of ETH dipped to $3,384, leaving both dow...
XRP and Ondo were the only coins in the top 100 that bucked the trend and registered an increase of 2.5% and 2.2%, respectively.
The recently launched zkSync token (ZK) was the worst performer among the top 100 coins. It saw a downtick of 26% in the past 24 hours.
Last week, institutional investors were net sellers across institutional crypto products as Bitcoin ETFs witnessed net outflows to the tune of $621 million. The trend continued yesterday, as net outflows from U.S. spot Bitcoin ETFs touched $145.9 million yesterday, according to investment management firm Farside Investors.
Bitcoin ETFs Cool as Crypto Funds Post Biggest Losses Since March
The Federal Reserve’s hawkish stance last week has seemingly lowered institutional investors’ confidence in the markets, as total outflows across all crypto exchange-traded products (ETPs) last week stood at $600 million. That makes last week the worst for crypto ETP—including ETF—outflows since March. Investors appear to have lost confidence because of the dot plot—a collection of forecasts by the Fed presidents and governors. The plot now indicates that the Federal Reserve anticipates only one...
The primary reason behind the lack of confidence from institutions appears to be the Federal Reserve’s increasingly hawkish stance. At the start of the year, the dot plot indicated three rate cuts. But the most recently FOMC meeting showed that the committee now expects to make only one rate cut.
Then on Sunday, Minneapolis Federal Reserve President Neel Kashkari said that the Fed might not cut rates until December—which further dampened the mood of the market. Up until then, investors seemed optimistic that the Fed would cut rates in September, according to the CME FedWatch Tool.
Crypto liquidations reached $500M in the past 24 hours, with the vast majority—$432 million—coming from of long positions that have been forced to liquidate.
There's some optimism, though. A Wintermute trading desk note shared with Decrypt said the market downtrend might not last long.
“Current bearish sentiment may be short-lived as global central banks, like the Bank of Canada and the European Central Bank, have already initiated rate cuts, suggesting a global shift towards monetary easing,” the firm wrote.
Bitcoin Miners Are Starting to Dump Their Coins
Bitcoin miners are starting to dump their coin reserves following almost two months of strained revenue in the aftermath of the network’s fourth ‘halving’ event. In a Wednesday report, crypto market intelligence firm CryptoQuant said miners have been sending their BTC to exchanges in droves, reaching a two-month high of 3,000 BTC—worth approximately $207 million—on June 9. What followed was a 3% correction in Bitcoin’s price down to $66,000 on Tuesday, although the asset recovered fairly quickly...
However, the note also suggested that Bitcoin miners aren't done selling their BTC holdings to fund their operations or upgrade their hardware. Miners saw a brief boost in their profitability when Runes launched during the recent Bitcoin halving event. But lately interest in Runes is dwindling.
The potential for Mt. Gox creditors being repaid is an additional cause for worry, Wintermute added in its note. It could flood the market with 137,980 BTC, worth approximately $9.04 billion at the time of writing, into the market. Analysts have been saying it would likely create a sudden jolt of sell pressure.
Edited by Stacy Elliott.
