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Bitcoin’s Retreat Below $70K Sparks Broader Crypto Selloff, Despite Strong ETF Accumulation

Snapshot

Bitcoin’s attempt to challenge all-time highs was cut short by a sharp selloff on Friday, pulling the broader cryptocurrency market down and erasing most of the week’s gains. Despite strong accumulation by spot bitcoin ETFs, the market couldn’t sustain its upward momentum.

Why It Matters

The retreat in bitcoin and the broader crypto market highlights the volatility and speculative nature of the space. The selloff, which led to $450 million in liquidations, the largest since mid-April, was triggered by a stronger-than-expected U.S. jobs report, dashing hopes for an imminent interest rate cut by the Federal Reserve.

By the Numbers

  • Bitcoin down 2.5% over the past 24 hours, trading at $69,000
  • CoinDesk 20 Index lower by 5%
  • Ether (ETH) off 4%
  • Tezos (XTZ) and EOS (EOS) down 10%
  • Solana (SOL) lower by 7%
  • $450 million in liquidations, largest since mid-April

What’s Next

The market will be closely watching for any further developments in the regulatory landscape and the broader financial markets. The upcoming Federal Reserve meeting and any comments on interest rates will be key in determining the short-term direction of the crypto market.

The Big Picture

Despite the selloff, the long-term outlook for bitcoin and the broader crypto market remains positive. The strong accumulation by spot bitcoin ETFs, which have added 56K bitcoins over the past 18 days, nearly 7 times the amount mined during that period, suggests strong institutional demand. However, the market remains highly speculative and prone to sharp swings in the short term.

What do you think about the recent selloff in the crypto market? Do you believe it’s a temporary setback or a sign of a deeper correction? Leave a comment below with your thoughts.

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