Markets
What’s going on with cryptocurrencies? Understanding the latest cryptocurrency sell-off
The global cryptocurrency market is currently experiencing a severe slowdown, with increasing liquidation threatening the stability of Bitcoin and altcoins.
Dive deeper to get the latest on the cryptocurrency crash and see what experts are saying about the future.
Bitcoin Market Crash
At the time of writing, the price of Bitcoin is $54,541, up from $57,031 yesterday. Over the past four days, Bitcoin has dropped $62,829, a drop of 11.5% over the week. On June 29, Bitcoin was worth nearly $60,920.
On July 1, the Bitcoin price reached a high of $62,793, but in the last 24 hours alone, it has fallen by nearly 7.3%. The hourly Bitcoin chart reveals strong selling pressure, as evidenced by at least three prominent red candlesticks. The market saw balanced selling and buying pressure early in the day, with a slight advantage to buyers. However, sellers eventually took control.
Ethereum follows suit
In the same way, The price of Ethereum has plunged over the past four days, suffering a 16.3% drop this week. On July 2, the price of Ethereum was around $3,417, but it has since fallen to $2,868.8. On June 29, it was around $3,372.
Despite hitting a weekly high of $3,441 on July 1, Ethereum has continued to weaken. Several long red candles on the hourly chart indicate significant declines, with one showing a drop from $3,093 to $2,930. In the last 24 hours alone, Ethereum has fallen by over 10.2%.
The current market landscape heavily favors sellers, with panic selling intensifying as prices fall below $3,000. Over the past 24 hours, over 221,704 traders have liquidated their holdings. Reports indicate that Ethereum’s liquidation has outpaced Bitcoin’s, with $44.5 million liquidated in the past hour alone and over $107 million in the past 24 hours.
The Uncertain Future of Ethereum
The exact cause of Ethereum’s sudden price drop remains unclear. Expert Antony Sassano points to the Grayscale ETHE Fund’s problems as a potential factor. Previously cheaper than the actual Ethereum it represents, the fund is now more expensive, raising concerns among investors about future fees once the fund is converted to an ETF. This uncertainty could prompt some investors to sell their holdings.
The Memecoin Industry is Crashing: What You Need to Know
Almost all of the top ten Meme parts have seen significant declines in the past 24 hours. Reports show losses ranging from 17% to 25%. Dogecoin, Shiba Inu, and Pepe have dropped 15.5%, 14.9%, and 16.2%, respectively. Dogwifhat, Bonk, and FLOKI have fallen 11.2%, 12.1%, and 15%, respectively. Brett has seen a sharp decline of 21.6%, while Book of Meme has dropped 17.9%. Mog Coin is reporting a more moderate decline of 8.0%.
With the launch of the Ethereum Spot ETF In a few weeks, the future of the cryptocurrency market remains uncertain. It remains to be seen whether this development will contribute to the market rebound.
Bulls vs. Bears: Are You Worried About Cryptocurrency Crash or Prefer to Stay Calm? Let Us Know What You Think!