Crypto Market Plunges: $250 Billion Lost in Recent Selloff, Bitcoin Price Tumbles
The crypto market experienced a sharp correction, causing the global crypto market cap to plummet by more than 8% to a low of $2.38 trillion. This significant drop resulted in over $250 billion in market value being lost in the recent selloff.
Bitcoin, the leading cryptocurrency, saw its price tumble from $70,978 to $65,254 due to a variety of factors including options expiry, historical Bitcoin halving patterns, macroeconomic influences, and technical chart weakness. This drop in Bitcoin price triggered a selloff in the entire crypto market, with Ethereum also plunging by 12%. As a result, altcoins such as SOL, XRP, ADA, DOGE, SHIB, and others experienced losses ranging from 15-30%, with meme coins being among the most heavily impacted.
The selloff in the crypto market was initially sparked by options expiry and was further exacerbated by other factors. Experts had been predicting a potential market crash if Bitcoin price followed similar patterns seen during previous halving events and recent spot Bitcoin ETF listings. The selloff began with options expiry and was influenced by lower max pain points, dominant sell trades in the derivatives market, and subdued sentiment following the release of U.S. CPI data.
The global macroeconomic landscape also played a role in the market correction, with geopolitical tensions in the Middle East and negative sentiment from major bank earnings reports contributing to the selloff. The rise in the US dollar index and Treasury yields further impacted Bitcoin price, causing it to fall to $65,254.
Despite the significant correction, experts believe that the crypto market may still see further downside. Over $950 million in liquidations occurred during the selloff, with QCP Capital suggesting that traders should consider hedging against short-term downside risks. Additionally, concerns have been raised about potential Bitcoin sell-offs by miners and whales following the halving event.
As of now, Bitcoin is trading at $67,211 and Ethereum at $3,252, with both cryptocurrencies facing continued selloff pressure. The market remains volatile, and traders are advised to proceed with caution in the current environment.
