- Bitcoin’s instability has led to broader downturns across several altcoins.
- Avalanche (AVAX) and Cardano (ADA) have experienced declines, erasing their 2024 gains and falling to lows last recorded in late 2023.
- Market-wide bearish sentiment continued to dominate, with the total cryptocurrency market capitalization dropping by 1.63% over the last 24 hours, according to data from CoinMarketCap.
Explore the current dynamics in the crypto market, including altcoin performance and significant Bitcoin movements, in our detailed analysis.
Decline in Cryptocurrency Market: What’s Happening?
The cryptocurrency market saw a notable decline today as bearish sentiment from the previous week persisted. Bitcoin (BTC) played a pivotal role in this downward trend, plunging to $64.5K, a value last seen in mid-May. This drop was accompanied by significant outflows totaling over $200 million across BTC spot markets within the last 12 hours alone.
Effect on Bitcoin and Broader Market Reactions
Investor caution was particularly evident in U.S. spot BTC ETFs, where Monday saw outflows totaling $145.9 million, according to Farside Investors data. This data suggests a sustained bearish outlook carrying over into the new week.
The retracement had a harsher impact on altcoins. Numerous altcoins experienced pullbacks exceeding 50%. In contrast, Bitcoin’s dip to $65K represented only a 10% decline from its March peak of $73.7K. Solana (SOL), for example, dipped approximately 4% over the past day and is now trading at $137, marking a 38% fall from its 2024 highs. While SOL dropped below its 50-day EMA, it managed to hold slightly above its 200-day EMA.
Altcoin Performance Amid Market Downturn
Cardano (ADA) saw one of the steepest declines, falling 55% from its 2024 high of $0.8 to $0.37, touching levels last seen in November 2023. This breach below both the 50-day and 200-day EMAs underscores the prevailing selling pressure.
Avalanche (AVAX) similarly endured a 10% drop over the last 24 hours, revisiting lows from December 2023. The sharp declines in these altcoins highlight the greater vulnerability of altcoins in a bearish market environment.
Market Reaction and Future Outlook
Long positions have been hit hardest amid the sell-off. Coinglass data indicates that the total liquidations reached over $240 million in the past 12 hours, with long positions accounting for $224 million. This signals a predominant liquidation event impacting investors betting on the market’s recovery.
As we approach the U.S. holiday on June 19th, with many federal banks closing, there is speculation whether trading activity will diminish, potentially mitigating further market declines. Investors and analysts alike will be observing closely to assess the impact of restricted trading volumes on market stability.
Conclusion
In summary, today’s crypto market downturn is a continuation of last week’s bearish trends, significantly impacting both Bitcoin and altcoins. This analysis underscores the importance of monitoring market signals and understanding the broader implications of major asset movements. With potential disruptions due to the upcoming U.S. holiday, stakeholders should stay informed to navigate these unpredictable waters effectively.
