The cryptocurrency market sent investors on Thursday during a roller coaster, with major assets such as Bitcoin and Ethereum increasing on American inflation data, only promising the course, erasing all the gains and becoming negative. This “false” left many traders asking why the market decreases after what seemed to be good news.
The volatility catalyst was a more expensive than expected consumer price index (ICC) report, which showed annual inflation to 2.4%, just below 2.5%forecast. Although this should have been an optimistic signal, optimism was short -lived as a combination of massive liquidations, technical failures and macroeconomic soles took control, sending tumbled prices.
Action of today’s prices: Bitcoin, Ethereum, XRP and Dogecoin Fall
- Bitcoin (BTC): The flagship cryptocurrency initially exceeded $ 110,000 before retiring, currently negotiating about $ 107,634, a drop of 1.4% on the last day.
- Ethereum (ETH): After having touched its highest point in the months at $ 2,878, Ethereum reproduced in the trade nearly $ 2,750, down 0.8%.
- XRP: Despite a two -week summit of $ 2,3368, XRP was faced with constant sales pressure and is down 1.4% to $ 2.23.
- DOGECOIN (DOGE): The popular same, so far exceeded $ 0.20 before undergoing a loss of 2.5%, now negotiating around $ 0.19.
Why is the crypto broken down? Four factors behind the overthrow
The sudden drop can be attributed to a perfect storm of factors that have quickly overwhelmed the initial positive feeling.
1. A liquidation cascade The main engine of the net slowdown was a massive liquidation wave. In the past 24 hours, on $ 683.4 million In future crypto has been liquidated. Critically, $ 617.85 million Among these, there were long positions, indicating that the bullish merchants were overcome were destroyed in reversal, amplifying the pressure down.
2. Critical technical ventilation The total market capitalization of the crypto has broken below the crucial Support level of 3.35 billions of dollars. This technical failure sparked algorithmic sales programs and stop-loss orders, creating a domino sales effect that has reduced all major cryptocurrencies.
3. Geopolitical and macroeconomic jitters Beyond the graphics, investors remain cautious. The confirmation of the secretary of the Treasury Scott is that the American-Chinese trade negotiations are “a bit of a standstill” have attenuated the feeling of investors, triggering risk behavior in the global markets which often pours into crypto. As Dr. Kirill Kretov of Coinpanel explains, “macroeconomic uncertainty is still high. With the fine liquidity of the market, even moderate players … could easily advance prices against expectations. ”
4. Late the Bitcoin request After his race for summits of all time over $ 111,000, Bitcoin demand measures have declined. The growth in demand on May 28 was close to the same peak levels that marked the market summit in December 2024, which suggests that the market was already ready for a correction.
What is the next step? Expert price predictions
Despite the current volatility, many analysts remain optimistic about the long -term perspectives.
- Bitcoin (BTC): Experts suggest a negotiation range between $ 100,000 and $ 120,000 while BTC is consolidated. While Bitfinex targets $ 115,000 in early July, Tom Lee de Fundstrat has a much more aggressive forecast of $ 150,000 to $ 250,000 by the end of the year.
- Ethereum (ETH): Analysts expect that a summer rally can push the ETH back to the area from $ 2,800 to $ 2,900, with a potential of the psychological bar of $ 3,000 in July. Paul Howard de Winccent expects that “a laterally continuous movement … with the prices of expectations to go around summer and beyond.”
- XRP: The fate of the token is based on the June 16 Result of the Ripple prosecution. A favorable result could send the price rally to $ 0.80, while a negative could push it down to support approximately $ 0.45.
- DOGECOIN (DOGE): From a technical point of view, Dogecoin seems to be the weakest majors. With the level of $ 0.25 acting as a strong resistance, a descent to the $ 0.15 area seems likely.
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