Altcoin

Here’s Why Bitcoin, ETH, SOL, XRP, DOGE Slips Today

Published

7 months ago

June 9, 2024

Crypto Market Selloff: The cryptocurrency sector has witnessed a sharp decline today, with major cryptos like Bitcoin, ETH, BNB, SOL, XRP, and DOGE, among others, noting a retreat. Meanwhile, the sudden change in the sentiment from earlier this week has sparked discussions in the crypto market over the potential reason behind the selloff.

For context, the market was expecting a new high for the Bitcoin price in the near future earlier this week, while also keeping a bullish outlook for the altcoins.

Reasons Behind The Recent Crypto Market Selloff

The market sentiment has been bullish lately, as witnessed by the recent surges in crypto prices this week. However, despite the positive momentum noted throughout the week, the sentiment appears to have changed through Friday, triggering a massive crypto market selloff.

Meanwhile, the panic in the market starts just after the U.S. Job data release by the Labor Department on Friday, June 7. The latest labor market report showed that the U.S. added 272,000 jobs in May, a massive spike from the previous month as well as from the market forecasts.

Although the unemployment rate has also increased to 4% last month from 3.9% in April, the robust non-farm payroll data has weighed on the investors’ sentiment. For context, the strong non-farm payroll data has dampened hopes over a potential interest rate cut by the U.S. Federal Reserve, which has sparked concerns in the broader financial sector, let alone the crypto market.

In addition, the latest decision by the leading meme stock GameStop (GME) to sell $175 million in shares has also sparked concerns in the broader market. The GME stock closed at nearly 40% down on Friday, June 7. Following that, the leading meme coins like GME, DOGE, SHIB, and others have also witnessed a sharp decline.

Also Read: Why is Bitcoin Price Falling Sharply Today

What’s Next?

The recent volatility in the cryptocurrency market has led to massive liquidations. According to CoinGlass data, a total of 147,330 traders were liquidated in the last 24 hours, with total losses amounting to $411.25 million.

Notably, the most substantial single liquidation occurred on OKX, involving an ETH-USD-SWAP worth $5.20 million. This wave of liquidations highlights the ongoing market turbulence and the associated risks for traders amid rapid price fluctuations.

Meanwhile, the global crypto market cap slipped 3.47% to $2.55 trillion amid rate-cut concerns. Bitcoin price slipped 2.81% to $69,275.03, while Ethereum price fell 3.6% to $3,681.7. Simultaneously, Solana price plunged 6% to $162.11, with XRP price falling 5% to $0.4998.

However, despite that, some investors still remain optimistic about a potential rebound, with the U.S. Spot Bitcoin ETF noting a significant influx. Through the ongoing week, the U.S. Spot Bitcoin ETFs have witnessed a net inflow of $1.8 billion, reflecting the institutional interest in the flagship crypto.

Also Read: