The crypto market saw a selloff in US hours on Wednesday as investors brace for uncertainty after the recent recovery in the broader crypto market, with market value plunging nearly 2.50% to $2.57 trillion.
Bitcoin price fell 1% in an hour, dragging BTC price to $69,500 down more than 2% in the last 24 hours. The trading volume has decreased by over 35% in the past 24 hours after the recent rally.
Ethereum price also tumbled 3% in the last 24 hours despite positive progress on spot Ether ETF, with other top altcoins including Solana, XRP, Dogecoin, Cardano, and Shiba Inu falling 2-3% in an hour. Today’s leaders such as PEPE, BOOK OF MEME, GALA, WIF prices also dropped 3-6%. Let’s check what’s causing the market to fall.
Bitcoin, Ethereum and Meme Coin Prices Fell
The crypto market saw a broader selloff after the UK inflation data release. The annual inflation rate in the UK eased to 2.3% from 3.2% last month, but came in more than 2.1% forecasts. Despite the inflation missing market expectations, Pound Sterling strengthens as UK inflation is near the Bank of England’s 2% target.
As a result, the US dollar index (DXY) was volatile today but fell after the UK inflation data. However, the US 10-Yr Treasury yield (US10Y) saw an unusual increase of 0.027% to 4.457%. This caused Bitcoin to remain volatile despite low trading volumes.
Furthermore, the FOMC Minutes release today has caused traders to take a cautious approach after many Fed officials consider that inflationary pressure can still delay or reduce the number of Fed rate cuts this year. The CME FedWatch shows a 49.5% probability of 25 bps rate cuts in September.
Coinglass data revealed that the crypto market saw $40 million in liquidation in the last few hours, with a total of $180 million liquidated over 24 hours. Notably, $125 million longs and $55 million shorts were liquidated in the last 24 hours, with Ethereum, Bitcoin, Pepe Coin, Solana, and Dogecoin leading the liquidation figures.
Over 64K traders were liquidated and the largest single liquidation order happened on crypto exchange BitMEX as traded XBTUSD valued at $4.26 million. This caused crypto market to fall slightly in the last few hours.
Also Read: WisdomTree Secures FCA Approval To List Bitcoin, Ether ETPs On LSE
Analysts Reveal Sell Signals
John Bollinger, inventor of Bollinger Bands, predicts a consolidation or a pullback in Bitcoin due to two-bar reversal at the upper Bollinger Band. However, he is not bearish, but short-term concerned.
I am not fond of the two-bar reversal at the upper Bollinger Band for $btcusd Suggests a consol or a pullback. Not bearish here, just short-term concerned. https://t.co/4567TCglIy
— John Bollinger (@bbands) May 21, 2024
Popular analyst Ali Martinez also revealed that TD Sequential indicator is now showing sell signal on the Bitcoin daily chart. He recommends traders to trade BTC with caution.
Thus, Bitcoin could see a selloff in the next dew days. Altcoins are much likely to witness pullback due to profit booking after the recent rally.
Moreover, BTC Futures Open Interest on CME continues to fall after a 3% drop in the last 24 hours. Total BTC Futures Open Interest dropped 2% in the last 24 hours. XRP, DOGE, PEPE futures open interests are falling significantly, while other altcoins saw some buying.
Also Read: Bitcoin Price To Face Potential Correction If It Hits This Level
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
