The cryptocurrency market has faced a significant downturn, losing 5.66% in a short period. Bitcoin and other popular cryptocurrencies have seen substantial price drops.
Reasons for the Market Drop
The primary reason for the sudden market decline seems to be new signals from the U.S. Federal Reserve. Recent inflation data shows core indicators remain above expectations, reducing the odds of a rate cut in June.
Outflows from Bitcoin ETFs
Another negative factor was the significant outflows from Bitcoin ETFs. On June 12, there was a sharp reversal, with $202 million flowing out of funds, with nearly $197 million coming from Fidelity's ETF.
Impact on Traders and Altcoin Market
In the last 24 hours, over 247,000 traders were liquidated, with total liquidations hitting $1.15 billion. Altcoins also suffered from the overall decline, with the Altseason Index dropping to 16. Ethereum fell over 9.29%, currently trading around $2,508.
The cryptocurrency market is under significant pressure, and current economic conditions alongside ETF outflows create an uncomfortable environment for traders. Investors remain anxiously awaiting future developments.
