Crypto market sees sharp decline as Bitcoin dips below $70k

Image: Shutterstock

Bitcoin's recent surge to new highs has taken a sudden turn, with the cryptocurrency experiencing a sharp decline in the US trading on Friday. Despite this, it still managed to eke out a small gain over the past week. As of today, Bitcoin is trading at nearly $69,000, a 2.5 percent drop from the previous day. This is a significant improvement compared to the broader CoinDesk 20 Index, which has fallen by 5 percent over the same period.

The recent downturn in the cryptocurrency market has led to significant liquidations, resulting in a staggering $450 million worth of assets being sold off. This marks the largest liquidation event since a mid-April washout, highlighting the intense selling pressure that has gripped the market.

Bitcoin's momentum stalled earlier on Friday when it hit a high of $72,000, but it quickly reversed course in the morning hours as the US employment report for May revealed a significant 272,000 job gain.

This stronger-than-expected data led to a shift in market expectations, as it now appears less likely that the Federal Reserve will cut interest rates in the near future. As a result, interest rates and the dollar surged, causing Bitcoin to dip in value.

The crypto market's downward trend gained momentum later in the day after Roaring Kitty, a well-known trading figure, hosted his first YouTube livestream in several years. Despite the high anticipation, the event failed to deliver significant news or announcements, leaving many viewers underwhelmed.

The only notable comment from Roaring Kitty was his optimism about GameStop's potential for transformation under new management, which didn't seem to have a substantial impact on the market.
GME shares continued their downward slide during Roaring Kitty's livestream, plummeting 40 percent for the day. The meme coin is now 50 percent off its earlier highs. Other meme coins are also feeling the heat, with Dogecoin (DOGE) down 8 percent over the past 24 hours, Shiba Inu (SHIB) off 10 percent, and Pepecoin (PEPE) declining by 15 percent.

As the crypto market fluctuates, Bitcoin enthusiasts are left wondering what would cause a significant price increase. One notable development is the steady inflow of funds into spot ETFs, which has now reached an impressive 18 consecutive days.

This streak, which began in February and March, has seen the ETFs absorb over 56,000 bitcoins, a staggering amount roughly seven times the total amount of Bitcoin mined during that period.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
Twitter: @bhardwajshash