TL;DR
- Bitcoin’s Brief Dip: Bitcoin (BTC) experienced a sharp decline, falling below the $67,000 threshold to a low of around $66,900, marking a near 4% drop in a single day and stirring unease among the crypto market.
- Selling Surge and Liquidations: A significant increase in spot-selling, primarily on Binance, led to about $200 million in sales, contributing to substantial liquidations totaling approximately $185 million, with Bitcoin and Ethereum seeing around $50 million each in liquidated positions.
- Altcoins and Economic Outlook: Altcoins mirrored Bitcoin’s fall, with Ethereum dropping to $3,530 and Binance Coin down by 7%, as the market anticipates the upcoming FOMC meeting and CPI report.
Today, the crypto market took a hit as Bitcoin (BTC) led the downward trend. BTC briefly dropped below $67,000, hitting a low of around $66,900. This marks a nearly 4% decrease in just one day, causing worry among both investors and traders.
Data from Glassnode revealed a surge in spot-selling activity, with an estimated $200 million worth of sales occurring across various exchanges. Binance, one of the largest cryptocurrency exchanges, was identified as the primary source of this sell-off.
The Spot Cumulative Volume Delta (CVD), which measures the net volume of buying versus selling, indicated that sellers were overwhelmingly dominating the market momentum.
Crypto Market’s Liquidation and Losses
The sell-off pressure led to significant liquidations, with Coinglass reporting around $185 million in liquidations over the past day. A staggering $160 million of these were long positions, suggesting a bullish sentiment that was abruptly corrected.
Bitcoin and Ethereum, the two largest cryptocurrencies by market cap, were not spared, each seeing liquidations close to $50 million. The crypto market’s volatility comes ahead of critical economic announcements.
The Federal Reserve’s Federal Open Market Committee (FOMC) is expected to decide on interest rates, with the consensus being that rates will hold steady. Meanwhile, the U.S. Consumer Price Index (CPI) report is anticipated to show a headline CPI of 3.4% and a core CPI of 3.5%, figures that exceed the FOMC’s long-term target of 2%.
Altcoins Follow Suit
The bearish trend wasn’t confined to Bitcoin. The altcoin sector also saw red, with the total crypto market cap shedding $80 billion. Ethereum dropped by 3.9%, falling to $3,530, while other popular altcoins like SOL, DOGE, TON, SHIB, and LINK also faced declines. Binance Coin (BNB), which had previously shown strong performance, experienced a sharp 7% decrease, bringing its value below $605.
As the market braces for the upcoming FOMC meeting and CPI report, investors remain cautious. The recent sell-off serves as a reminder of the inherent risks and volatility in the cryptocurrency market.
