Hey there! It’s been quite a rollercoaster ride for Bitcoin and the cryptocurrency market this week. Let’s break down what went down:
Bitcoin Hits Lowest in Four Weeks
Bitcoin took a tumble down to $65,100, its lowest point in the past month. This drop has got a lot of people worried about where things might be heading next.
Over the past week, the cryptocurrency market faced intense pressure with $214 million in leveraged derivatives being liquidated within 24 hours. The total liquidations for the week soared to a staggering $870 million.
Market analysts are wary that if Bitcoin fails to sustain above $65,000, it could potentially drop further to around $61,000. This prediction underscores the fragile sentiment currently prevailing in the market.
Effect on Altcoins
Following Bitcoin's lead, other prominent cryptocurrencies such as Solana, Avalanche, Cardano, and Near also experienced notable losses, ranging between 15% to 20%.
Impact of Derivatives Liquidations
Bitcoin's sudden drop by over 2% within an hour, plummeting from $67,000 to $65,100, marked a significant 7.5% decrease over the week.
The substantial liquidations of leveraged derivatives, intended to mitigate risk, further exacerbated Bitcoin's price pressure. Additionally, divergent economic indicators and Federal Reserve projections fell short of investor expectations for a softer monetary policy, dampening market sentiment.
Political Uncertainty
Political uncertainties in Europe, notably the unexpected snap election in France, bolstered the U.S. dollar index (DXY), compounding challenges for Bitcoin and the broader cryptocurrency market.
This week proved tumultuous for cryptocurrency enthusiasts as Bitcoin's price fluctuated wildly between $65,000 and $70,000.
This update covers the latest in the crypto market for this week. Let's delve into the significant news events that unfolded this week:
1️⃣ Annual CPI rate for May: 3.3%, lower than expected, interest rates unchanged.(5.25% to5.5%)
2️⃣ Spot Ethereum ETFs Expected to Commence Trading by July 2, Predicts Bloomberg Analyst
3️⃣ Trump advocates U.S. Bitcoin mining dominance, meets industry reps to support crypto initiatives.
4️⃣ SEC likely to approve ETH spot ETF by summer's end; Gensler vague on Ethereum's commodity status.
5️⃣ Vitalik Buterin proposes directions to counter memecoin dominance, including zk-tech and privacy enhancements.
6️⃣ Binance surpasses 200M global users; addresses issues in trading, listings, and risk control.
7️⃣ Bybit plans staff relocation to Malaysia and Dubai post opening for Chinese users.
8️⃣ Tether's investment arm eyes $1B investment in trading, focusing on AI and biotech sectors.
9️⃣ MicroStrategy plans $500M private placement to buy more Bitcoin, notes mature in 2032.
🔟 Biden's team exploring crypto donations via Coinbase to attract supporters and boost funds.
For more detailed insights, you can refer to the full research report here.
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