- Bitcoin (BTC) has seen a substantial drop, as the cryptocurrency market as a whole experiences a downturn.
- Ethereum (ETH) and several other major cryptocurrencies like XRP, Solana (SOL), and Dogecoin (DOGE) have also suffered considerable losses.
- Market experts point to concerns about the global economy and seasonal liquidity declines as contributing factors.
Major cryptocurrencies, including Bitcoin and Ethereum, take a hit amid economic uncertainty and summer liquidity issues. Experts anticipate continued volatility.
Market Uncertainty Persists
Marko Jurina, CEO of Jumper.Exchange, a decentralized exchange (DEX), pointed out that during periods of economic and market uncertainty, traders often sell assets at discounted prices to minimize potential losses or exit risky positions.
Jurina emphasized that the current economic climate is contributing to the volatility seen in the cryptocurrency market. Factors such as global economic weakening, unresolved geopolitical tensions, and reduced market activity during the summer months are playing significant roles in the instability.
As a result, these conditions are expected to persist, with Bitcoin’s price potentially experiencing sharp movements in either direction over the next few months.
Since reaching an all-time high of $73,700 on March 14, Bitcoin has struggled to maintain its momentum. After briefly testing the $70,000 level in early June, the cryptocurrency has not managed to reclaim its bullish trajectory, experiencing a 4% decline for the month and a 9% drop for the quarter.
Bitcoin Correction Toward $61,000?
Recent on-chain data from CryptoQuant indicates that traders have been reducing their Bitcoin holdings since late May, following the cryptocurrency’s touch of the $70,000 mark. This trend has persisted with minimal buying activity.
Ki Young Ju, Founder of CryptoQuant, highlighted substantial selling by long-term Bitcoin holder whales, amounting to $1.2 billion over the past two weeks. Additionally, exchange-traded funds (ETFs) have seen outflows of $460 million during the same period.
Young Ju warned that if this significant sell-side liquidity is not absorbed through over-the-counter (OTC) transactions, brokers might deposit Bitcoin to exchanges, potentially affecting market dynamics.
Possible Market Correction Indicators
On June 14, crypto analyst Ali Martinez underscored that Bitcoin needed to quickly break above the $66,250 level to evade a potential correction down to $61,100. Martinez suggested that without a swift recovery in bullish momentum, Bitcoin’s price might drop to around $61,000.
Analyst Rekt Capital noted that Bitcoin is approaching the filling of its first Chicago Mercantile Exchange (CME) gap, with specific gaps identified at $64,000 and $62,500.
Conclusion
The current market conditions suggest a bearish outlook for Bitcoin, with a challenging road ahead for the foremost cryptocurrency. The full extent of the potential downturn and the eventual stabilization point are yet to be determined. As of now, Bitcoin trades at $64,770, indicating the market’s prevailing uncertainty and the rocky path forward.
