Recent Crypto Market Selloff Sparks Discussion and Liquidates $70 Billion: What Triggered the Downturn?
In a tumultuous turn of events, the recent crypto market selloff has sparked discussions in the digital asset market while resulting in the liquidation of a staggering $70 billion within a span of 24 hours. This latest downturn follows a period of heightened volatility in recent days, raising concerns among investors and analysts alike.
The recent crypto market selloff can be attributed to a confluence of factors, with economic data from the United States serving as a primary catalyst for the downturn. The Bureau of Economic Analysis released GDP figures on Thursday, April 25, that fell short of market expectations, indicating a sluggish growth rate of 1.6% compared to the anticipated 2.5%.
In addition, the Core PCE Price Index surged to 3.7% in the first quarter, while PCE inflation rose to 3.4%, surpassing forecasts. These gloomy data have dampened the crypto investors’ sentiment while raising concerns over a further delay in the U.S. Federal Reserve’s rate cut plans.
Compounding the market downturn, outflows from the U.S. Spot Bitcoin ETF over three consecutive days signaled a cooling sentiment among institutional investors. Significant withdrawals from major players in the cryptocurrency arena contributed to the downward pressure on prices.
As a result of these developments, the global cryptocurrency market cap experienced a substantial decline, shedding nearly $70 billion within a 24-hour period. However, some investors have seized the opportunity to accumulate digital assets at discounted prices, hinting at underlying resilience in the market.
Despite the market turbulence, the Bitcoin price lost 2.13% over the last 24 hours and traded at $62,950.61. Other cryptocurrencies like Solana, XRP, and Shiba Inu also experienced price drops amid the broader crypto market slump.
Overall, the recent crypto market selloff has raised concerns and sparked discussions among investors and analysts, highlighting the volatility and uncertainty in the digital asset market. Investors will be closely watching for any further developments that may impact the market in the coming days.
