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Big Friday Crypto Selloff Pulls Bitcoin Below $70K

Jun 6, 2024
  • Challenging an all-time high earlier Friday, bitcoin has pulled back, giving up most of its weekly gains
  • The selloff in the rest of the cryptocurrency market was far larger as speculative fever cooled
  • The spot bitcoin ETFs are on their largest accumulation streak since launch, but it wasn’t enough for a sustained rally in price.
As a seasoned crypto investor with a few bear market cycles under my belt, I’ve seen this movie before. The recent pullback in bitcoin and the broader cryptocurrency market is not unexpected, given the speculative nature of the asset class. The all-time high challenge earlier this week was always going to be met with resistance, especially after the strong rally we saw in the first half of the year.The perceived hurdle for Bitcoin (BTC) reaching new highs in the US market has unexpectedly given way to a sharp decline on Friday. Despite this setback, Bitcoin just manages to hold on to a weekly profit.

As a researcher, I’d express it this way: At the current moment of reporting, bitcoin was being traded at around $69,000, representing a 2.5% decrease in value within the previous 24 hours. In contrast, the CoinDesk 20 Index experienced a more substantial decline of 5% over the same time frame.

As a researcher examining the performance of CoinDesk’s top 20 cryptocurrencies, I observed that ether (ETH) declined by 4%. In contrast, Tezos (XTX) and EOS (EXOS) experienced more significant losses with a drop of 10% each. Solana (SOL) also saw a decrease, amounting to 7%.

Based on information from Coinglass, the recent selloff resulted in approximately $450 million worth of liquidations – the greatest amount since the significant market correction in mid-April.

In the early hours of U.S. trading on Friday, bitcoin faced a significant challenge as it tried to hold onto its value of over $72,000. However, this attempt was thwarted following the release of the U.S. employment report for May. The report revealed that an impressive 272,000 jobs had been added, which far surpassed expectations.

Bitcoin and crypto markets experienced a significant sell-off several hours following Roaring Kitty’s highly anticipated YouTube live stream after a long absence. While many had hoped for groundbreaking announcements, the trading icon instead shared relatively mundane insights. The only notable comment made was his optimistic view that GameStop’s management would successfully transform the company into something valuable in the coming years.

As a crypto investor, I’ve noticed that my GME shares have taken a hit today, losing around 40% during the broadcast. Unfortunately, the GME meme coin has also suffered significant losses, currently down by about 50% from its highs achieved earlier this Friday. Upon checking other meme coins, I see that dogecoin (DOGE) has dipped by 8%, shiba inu (SHIB) has declined by 10%, and pepecoin (PEPE) has plummeted by a substantial 15% over the last 24 hours.

During this period, Bitcoin investors may find themselves puzzled as to what could trigger a significant price surge. Remarkably, Bitcoin spot ETFs experienced an uninterrupted run of inflows for eighteen consecutive days as of Thursday, surpassing the record set even during the intense price rises in February and March. Over these eighteen days, a substantial 56,000 Bitcoins were added to the ETFs, representing almost seven times the amount mined during that timeframe based on HODL Capital’s data.

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2024-06-07 22:17