What is the reason behind today’s decline in the price of Bitcoin (BTC)?
In the second quarter, the cryptocurrency market experienced a sudden decline due to the fall in Bitcoin’s value, resulting in significant liquidations throughout the network.
Bitcoin, the leading cryptocurrency, saw a sharp drop, reaching a low of $66,000, while Ethereum briefly fell to $3,319. This sudden decrease in prices led to a large number of liquidations.
In the past hour alone, Bitcoin’s network witnessed a total liquidation of $157 million, with the majority of liquidations coming from long orders totaling $144 million.
The global crypto market as a whole also experienced a sudden decline. Ethereum fell by 6.71% in the last 24 hours, resulting in a loss of $92.26 million, while Solana fell by 9.32%, resulting in a loss of $17 million.
Interestingly, there has been a shift in liquidity from Bitcoin and other major altcoins to meme coins, which analysts have dubbed a “weird bull market.” While Bitcoin, Ethereum, and Solana saw significant outflows, the total capitalization of meme coins surged to $70 billion.
This increase in capitalization is believed to be primarily driven by pumps in newly launched tokens like ‘dogwifhat’ and ‘Book of Meme,’ as well as older meme coins like Pepe and Bonk.
Amidst the sudden market crash, Binance Labs has come under suspicion for selling some of its investment tokens. SpotOnChain reported a significant transfer of 9.33 million GMT tokens, equivalent to $3.14 million, from an address associated with Binance Labs to an address of Binance Deposit.
It is worth noting that the fourth-ever Bitcoin halving is just 18 days away from today’s flash crash. Bitcoin has shown seven consecutive monthly closes in the green, but market sentiment remains cautious as BTC/USD levels drop to their lowest point since March 25. Analysts are closely monitoring support levels, with potential retests of $67,200 looming if Bitcoin falls below the 200-period moving average on the four-hour timeframe.
Tags: Altcoins, Bitcoin, Price Analysis