Bitcoin Drops to $62K: Market Selloff Wipes Out $160B as Analysts Predict Further Decline

• Amid market turbulence, Bitcoin’s drop to $62K has triggered a broader selloff in Ethereum and altcoins.
• Key economic indicators like PCE data and options expiry are crucial for crypto market movements this week.
• An analyst forecasts a potential dip in Bitcoin prices to $50K due to technical patterns.

This week, the crypto market faces potential volatility with significant events influencing price trends.

Crypto Investors Face Major Losses Amid Market Selloff

The overall cryptocurrency market capitalization plummeted by $160 billion this week, causing investors to face significant net wealth reductions. The market sentiment has shifted noticeably, with the fear and greed index dipping from “extreme greed” to “neutral.” Currently, Bitcoin is experiencing more than a 3% daily drop, pushing its price to around $62,258 and leading traders to anticipate a plunge below the critical $61,000 support level.

Ethereum and Altcoins Also Suffer Significant Losses

Ethereum has not been spared in the market downturn, with its price falling 4% in the past 24 hours, contributing to a monthly decline of over 10%. Ethereum is currently trading at approximately $3,366 with an increase in trading volume as investors rush to liquidate their holdings. Likewise, other prominent altcoins like Solana, XRP, Toncoin, Dogecoin, Cardano, and Shiba Inu have seen declines ranging from 3% to 6% over the same period. Particularly affected have been meme coins and AI-related tokens, which have led the market correction.

Factors Driving the Crypto Market Decline

Recent data from Coinglass reveals that major cryptocurrencies observed a staggering $170 million in liquidations today, with $127 million liquidated in just the last 12 hours. This market volatility has affected more than 70,000 traders, with the largest single liquidation order occurring on BitMEX where a whale offloaded $10 million worth of XBTUSD.

Macro Events Looming Over the Market

The current market conditions are being heavily influenced by forthcoming macroeconomic events. Significant among these are the U.S. Personal Consumption Expenditures (PCE) data and the monthly options expiry, both of which are expected to create further market volatility. Additionally, upcoming events like the ISM manufacturing data, speeches by Fed Chair Powell, the FOMC meeting minutes, and key employment figures will likely impact market sentiments over the next couple of weeks.

Analyst Predicts Further Downside for Bitcoin

Markus Thielen from 10x Research has suggested that Bitcoin might see more drastic price action, potentially falling to $50,000. According to his analysis, the formation of a double top pattern in Bitcoin’s price charts could precipitate this decline. With the price currently hovering around key support levels, continued outflows from spot Bitcoin ETFs have made the market outlook increasingly bearish.

Altcoins Under Pressure

Altcoins are also under significant pressure. The latest data shows that over $80 million in long positions across BTC, ETH, SOL, DOGE, NOT, ORDI, PEOPLE, WIF, and PEPE have been liquidated in the past 4 hours. This liquidation spree has intensified the bearish momentum, leading to further market declines.

Conclusion

As the cryptocurrency market navigates through a tumultuous period, dominated by significant macroeconomic events and technical patterns, investors need to brace for potential downside risks. Key support levels will be critical in the coming weeks, especially as Bitcoin faces the threat of a dip to $50K. Meanwhile, altcoins continue to be impacted by both market sentiment and macroeconomic factors, setting the stage for a volatile trading environment.