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Bitcoin, Ether Little Changed Over Weekend After $400M Liquidation Rout

Jun 9, 2024
  • Analysts expect increased market volatility in the upcoming week due to key macroeconomic events such as the CPI release and a speech by Janet Yellen.
  • The crypto market experienced a downturn following the release of stonger-than-expected U.S. jobs data, with meme stocks like GameStop also seeing declines, impacting riskier assets like alternative tokens and meme coins.
As a seasoned crypto investor, I’ve seen my fair share of market volatility. The upcoming week is shaping up to be another rollercoaster ride for us, with key macroeconomic events such as the Consumer Price Index (CPI) release and Federal Open Market Committee (FOMC) meeting looming large. These events have historically led to increased market volatility, and I’m bracing myself for potential fluctuations in the crypto market.As a financial analyst, I observed that Bitcoin (BTC) and Ether (ETH) exhibited minimal price movement during the weekend. The decline in open interest and reduced trading volumes followed a significant $400 million liquidation event on Friday, which noticeably impacted market momentum.

As an analyst at Presto Research, I believe we can anticipate heightened market volatility in the upcoming week. Several significant macroeconomic events are scheduled to unfold, including the CPI release on Wednesday, the Federal Open Market Committee (FOMC) meeting on Thursday, and Janet Yellen’s speech on Friday. These catalysts have the potential to impact market sentiment and trading behavior.

Bitcoin futures contracts holders faced increased costs as they attempted to capitalize on the market downturn triggered by Friday’s unexpectedly robust non-farm payrolls (NFP) report. The US economy surpassed predictions with a gain of 275,000 jobs against the anticipated 185,000. In response, bitcoin prices plummeted from $71,000 to $69,000.

As an analyst, I’ve observed that a significant slide took place in the meme stock GameStop (GME), which had an impact on riskier assets like alternative tokens and meme coins. Specifically, the meme coins dogecoin (DOGE) and shiba inu (SHIB) experienced losses of up to 10%.

Over the past few days, specifically since last Friday, the amount of open interest – representing the number of active futures contracts across various cryptocurrencies – has dropped noticeably from $99 billion to a current figure of $60 billion. This significant decrease suggests that traders have substantially reduced their positions or bets in the market. Additionally, trading volumes have seen a decline of approximately 10% over the past 24 hours, according to Coinglass data.

In the early hours of European time on Monday, Bitcoin transacted slightly above $69,400, while Ethereum was traded around $3,660. Solana (SOL) and Ripple (XRP) experienced minor setbacks. The value of BNB tokens on BNB Chain decreased by approximately 5.5%, possibly due to traders cashing in after reaching an all-time high above $710 the previous week.
On Monday, the value of Cardano‘s cryptocurrency, ADA, experienced a slight increase. This uptick came after news broke about a potential technical development that could influence the underlying foundation of the network and its associated token.

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2024-06-10 11:23