Crypto Market Faces Sharp Decline Amid Trade worries and Fed Speculation
The crypto market took a hit on Friday, with Bitcoin (BTC) leading the downturn. Its price fell to $105,500, a significant drop from its all-time high of $111,900 last week. Other altcoins, including pancakeswap (CAKE), Raydium (RAY), Ethena (ENA), and Arbitrum (ARB), also suffered, losing over 10% of their value.
This market correction sparked a wave of liquidations. According to CoinGlass data, 24-hour liquidations surged by 125%, totaling $709 million. Nearly 224,000 traders were affected, with the biggest loss reaching almost $13 million.
Several factors contributed to this decline. First, Bitcoin’s price frequently enough corrects after reaching a new high. Second, June is historically a weak month for crypto, with Bitcoin typically returning -0.35%. Third, trade concerns persist following a court ruling on Trump’s tariffs, which are now headed to the Supreme Court. Lastly, the Federal Reserve may keep interest rates at 4.50% for a while, as indicated by recent minutes.
Despite these challenges, some analysts beleive the bull run isn’t over. The current price action could be forming a bullish flag pattern, suggesting a potential strong breakout. Additionally, Bitcoin’s supply on exchanges has decreased from 3.5 million in 2020 to 1.35 million, while demand continues to rise, with ETFs attracting over $45 billion in inflows.
These supply and demand dynamics, along with technical patterns, hint that Bitcoin could bounce back, possibly leading to an altcoin rally.
