The crypto market continued its downward trend over the past 24 hours, with total market capitalization falling to $2.15 trillion. Bitcoin quickly fell below the $63,000 mark, while Ethereum, XRP, and Solana all retreated in tandem, and market sentiment plummeted to extreme fear levels.
Fed signals turn hawkish
This round of decline occurred against the backdrop of the Federal Reserve keeping interest rates unchanged on June 17, but sending a more hawkish signal regarding the future policy path. The market had previously bet on more room for rate cuts this year, but the latest statement weakened that expectation.
The US dollar subsequently strengthened, putting pressure on risk assets. In the crypto market, the willingness to allocate funds to highly volatile, non-yielding assets decreased, leading to increased selling pressure.
Long positions liquidation
As prices declined, leveraged positions were forced to liquidate, further amplifying the fall. Data shows that Bitcoin liquidations reached $101.68 million within 24 hours, of which approximately 71% were long positions.
- The total market capitalization of the crypto market has fallen to $2.15 trillion.
- Bitcoin transactions totaled $101.68 million in the past 24 hours.
- Over $200 million in long positions were liquidated across the market within 4 hours.
In an even shorter period, more than $200 million in long positions across the crypto market were liquidated within four hours, indicating that this pullback was not only driven by spot selling pressure but also by a chain reaction in the derivatives market.
The market is focusing on three variables.
Currently, Bitcoin is still trading above the $62,000 to $64,000 support zone, and sellers have not yet pushed it down further. However, if the market attempts a rebound, there is still significant liquidity and resistance around $68,000.
Going forward, the market will continue to focus on whether the total market capitalization can hold above $2.1 trillion, whether Bitcoin's market share will stabilize, and whether subsequent US CPI data and statements from Federal Reserve officials will further reinforce hawkish expectations.
The article also mentions that the US Senate's discussions surrounding the CLARITY Act could be one of the few regulatory developments that improve sentiment in the short term. If the legislation progresses, it could provide support for XRP and the broader crypto market.
