Tue 18 Jun 2024 4 min of reading by Luc Jose A.
A new storm shakes the cryptocurrency market! Known for its volatility, the crypto market has once again surprised investors with a significant drop. Key assets like Bitcoin and Ethereum were particularly affected, but this is just the tip of the iceberg. What really happened, and what are the reasons behind this descent into hell?
The early hours of this Tuesday were particularly difficult for the cryptocurrency market, which suffered a brutal correction, causing significant losses for major digital assets. Bitcoin (BTC), the largest crypto by market capitalization, saw its price drop below the $66,000 mark, erasing gains from previous trading sessions.
Similarly, Ethereum (ETH), the second-largest crypto by market cap, plunged to $3,400, negating progress made in the previous week. Altcoins werent spared from this wave of selling either. Dogecoin (DOGE) and Solana (SOL) recorded drops of nearly 9% within 24 hours, illustrating the heightened volatility that characterizes this market.
The figures are equally alarming for other cryptos. TON and Binances BNB also felt the impact of this fall, although BNB better resisted with a limited decrease of 1.5%. At the same time, a significant reduction in Bitcoin positions held by asset managers listed in the United States was observed. In total, nine asset managers reduced their holdings by 3,169 BTC, approximately $208 million. Prestigious names like Fidelity and Grayscale were cited among the notable sellers. These two managers respectively reduced their positions by 1,224 BTC and 936 BTC.
Several factors have contributed to this sharp decline in the crypto market. Profit-taking by investors is one of the main causes of this drop, as they look to secure their gains after a period of rise. Additionally, net outflows from Bitcoin ETFs in the United States have increased downward pressure on the market. Another critical factor was the strengthening of the US dollar, triggered by political uncertainty following the surprise decision by French President Emmanuel Macron to call for early elections. This situation prompted traders to turn to the dollar, thereby weakening the price of Bitcoin, which traditionally has an inverse correlation with the US currency.
Recent speeches by officials of the US Federal Reserve (FED) have also weighed on the crypto market. FED Chairman Jerome Powell adopted a more stringent tone, signaling limited interest rate hikes for 2024, which dampened investor enthusiasm for risk assets like cryptos. Simultaneously, massive liquidations were observed, with $245 million in positions liquidated in 12 hours, including $225 million in long positions, increasing the selling pressure.
This price drop has various implications for the crypto market. On one hand, it reflects the markets increased sensitivity to macroeconomic factors and institutional capital movements. On the other hand, some analysts see this correction as a buying opportunity, especially for altcoins that are testing key support levels. The current trend shows that the crypto market could continue to fluctuate based on global economic developments and monetary policies. Investors must remain cautious and monitor signals of recovery or further declines.
Maximize your Cointribune experience with our 'Read to Earn' program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.
Diplm de Sciences Po Toulouse et titulaire d'une certification consultant blockchain dlivre par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'conomie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet cosystme en constante volution. Mon objectif est de permettre chacun de mieux comprendre la blockchain et de saisir les opportunits qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualit, de dcrypter les tendances du march, de relayer les dernires innovations technologiques et de mettre en perspective les enjeux conomiques et socitaux de cette rvolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
Read more here:
The Crypto Market is Collapsing: Bitcoin and Ether in Free Fall! - Cointribune EN
- Chinas Bitcoin Exchanges Say Banks Will Close Their Accounts [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- How I created my own bitcoin [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- How I created my own bitcoin-like currency [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- Bitcoin players knock on Washington doors [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- How does Bitcoin work? - Bitcoin [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- Should We Do a Bitcoin Sketch? - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- Bitcoin Talk Show #4 with Chris Ellis and Thomas Hunt - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- Bitcoin - an Introduction - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- Bitcoin ATM Unveiled on Capitol Hill - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- Fla. Bitcoin Case Tests Money Laundering Limits - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- Capitol Hill Bitcoin ATM...No Anonymity! April 10 2014 - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- BREAKING: US Congressman Steve Stockman To Introduce First Bitcoin Bill - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- 10 Things You Didn't Know About BitCoin - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- All about Bitcoin - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- Internet vs Bitcoin - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- Bitcoin: The Future of Currency? - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Watching Bitcoin dropping to new lows - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Bitcoin ATM unveiled in Washington DC: revolutionary digital currency arrives on Capitol Hill - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Qu'est-ce que le bitcoin ? - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Decentralize Everything -- Congresswoman Velazquez supports Bitcoin -- Stallman in Vienna - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Drake Bitcoin's Here Music Video - Bitcoin T Shirt Store - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- China tightens leash on bitcoin - Biz Wire - April 4,2014 - BONTV China - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- What is BITCOIN? Andreas Antonopoulos & Amir Taaki explain BTC value - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Texas Bitcoin Conference - Robocoin & Coinvault ATM - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Texas Bitcoin Conference - BitShares - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Is Bitcoin the Future of Money? (with Timothy B. Lee) - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Robert Murphy at Texas Bitcoin Conference 2014 about Austrian Economics, money theory and Bitcoin - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- CryptexCard - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Father of Virtual Reality on Bitcoin April 8 2014 - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- California's first bitcoin ATM launches in Silicon Valley - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Bitcoin Fight Night: Kickboxing for bitcoin and Max Keiser 'defeats banksters' - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Bitcoin blunder: Satoshi Nakamoto denies all involvement with cryptocurrency [Last Updated On: April 13th, 2014] [Originally Added On: April 13th, 2014]
- Bitcoin gets easier for consumers to buy, spend [Last Updated On: April 13th, 2014] [Originally Added On: April 13th, 2014]
- 11.04.14 Forex, Bitcoin Romanov Capital - Video [Last Updated On: April 13th, 2014] [Originally Added On: April 13th, 2014]
- USA: Capitol Hill gets its own Bitcoin ATM - Video [Last Updated On: April 13th, 2014] [Originally Added On: April 13th, 2014]
- Bitcoin, a moeda virtual. - Video [Last Updated On: April 13th, 2014] [Originally Added On: April 13th, 2014]
- Bitcoin creator Satoshi Nakamoto tracked down, but says story has no currency [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- Bitcoin's backers know they need to win you over [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- [Structure] Heartbleed and Bitcoin - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- BitCoin mining frame - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- Where Do You Think US Bitcoin Regulations Are Headed? - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- Dwyer 4-11-14 Bitcoin Update - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- 4/10/14 - China & BTC, Bitcoin Tax Solutions, Libra, BitInvest Coincards - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- Ben Lawsky & NY Regulators on Bitcoin - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- Bill to Change IRS Ruling on Bitcoin - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- Bitcoin is not over! Bitcoin Indian Food Night Saturday! (adult language, parody and yelling) - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- Demonstrating a Bitcoin ATM at Dig South - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- 10 Things You Didn t Know About BitCoin - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- How Bitcoin Works in 5 Minutes - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- Bitcoin Below $400, Massive Security Breach, 4,000 Merchants, and Congress - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- Reddit Co-founder Alexis Ohanian talks Bitcoin security, Mt. Gox on Joe Rogan Experience - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- Cointools: Drupal & Bitcoin == $awesome - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- Bitcoin ATM, Black Star Pastry, Rosebery, Sydney, Australia (Vending machine, BTM) - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- My Bitcoin Call to Alex Jones Infowars Digital Paper Wallets Storage - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- The Bitcoin Group #25 (Live) -- Bitcoin Sports -- Gox Buyout? -- Sidechains -- Dogecoin Merged? - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- 4/11/14 - China, Mt. Gox buyout, Gyft Cloud, BIT, new bitcoin symbol - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- 9 Year Old Explains Bitcoin - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- CITP Bitcoin Panel 2 Altcoins - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- Why US Regulators Should Go Easy on Bitcoin - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- In Crypto We Trust Hackathon Pitches - Bitcoin Expo 2014 - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- CITP Bitcoin - Panel 1: Economics and Public Policy - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- David Chen of Lightspeed Ventures visits Plug and Play Bitcoin - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- Video: Roundup of This Week's Bitcoin News 11th April 2014 - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- Peace and Bitcoin Remastered - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- [Bitcoin] Cannot be divorced from pre-existing political theory - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- Bitcoin Trade 114 - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- Wall Street's Fair Value of Bitcoin - Inside Bitcoins NYC 2014 - Video [Last Updated On: April 15th, 2014] [Originally Added On: April 15th, 2014]
- Elliotte Wave Technical Analysis Applied to Bitcoin - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]
- Bitcoin Wisdom Depth Chart - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]
- Live - Paris Bitcoin Startup #2 @TheFamily - Mercredi 16/04/2014 ds 19h - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]
- Not Tax Day, Bitcoin Day! - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]
- Preview: The Bitcoin Uprising - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]
- WCN Live: iNacho -- an interview with Jerica Truax -- win a bitcoin by rating Nachos! 🙂 - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]
- Can You Use Bitcoin for a Tax Haven? - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]
- What Is Proof Of Stake In Nextcoin (NXT) vs. Proof Of Work In Bitcoin (BTC) - By Tai Zen - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]
- Bitcoin, little failures and huge successes - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]
- Dutch Ethereum & Bitcoin Meetup: Coin Unlimited over Bitcoin en altcoins - Edwin van den Ouden - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]
- Dutch Ethereum & Bitcoin Meetup: Tor (The Onion Router) Joachim de Koning - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]
- Dutch Ethereum & Bitcoin Meetup: First Steps in Ethereum - Joachim de Koning (part one) - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]
- Dutch Ethereum & Bitcoin Meetup: First Steps in Ethereum Joachim de Koning (part two) - Video [Last Updated On: April 17th, 2014] [Originally Added On: April 17th, 2014]