Crypto Market Faces sharp Decline Amid Various Concerns
The crypto market experienced a significant downturn on Friday. Profit-taking adn worries about trade and the Federal Reserve played a major role. Bitcoinâs price fell to $105,500, a drop from its all-time high of $111,900 last week.
Altcoins like PancakeSwap, Raydium, Ethena, and Arbitrum also suffered, with losses exceeding 10%. This decline led to a surge in liquidations. CoinGlass data reveals that 24-hour liquidations rose by 125%, totaling $709 million. Nearly 224,000 traders faced liquidations, with the biggest loss reaching almost $13 million.
Bitcoinâs retreat is typical after reaching a record high. However, the impact on altcoins was more severe. June is historically a tough month for the crypto market, with Bitcoin averaging a -0.35% return.Many investors take summer breaks, reducing market activity.
Trade concerns persist following a court ruling on Trumpâs tariffs. The tariffsâ legality is still under appeal, adding uncertainty. The Federal Reserveâs interest rate stance also influences the market. Recent minutes suggest rates may stay at 4.50% for a while.
Despite the crash, signs indicate the bull run may continue. Bitcoinâs price action forms part of a bullish pattern, hinting at a potential strong breakout. demand for Bitcoin is rising, with ETFs attracting over $45 billion. exchange supply has dropped from 3.5 million in 2020 to 1.35 million,supporting a price rebound.
