Bitcoin Plunges Below $63,000, Triggers Market-Wide Crypto Selloff

Zinger Key Points
  • Ether and Solana's values also declined, with Ether dropping 9.5% and SOL over 12% amid market volatility.
  • The crypto market experienced a total of $620 million in liquidations across centralized exchanges in the last day.

Bitcoin BTC/USD prices took a tumble on Tuesday morning, dipping below $63,000 and dragging the entire cryptocurrency market down with it.

This sudden drop resulted in an 8% decline in total market capitalization within a 24-hour period.

Analysts are pointing to a shift in investor sentiment as a potential catalyst.

Data shows that Monday saw a significant outflow from the Grayscale Bitcoin ETF, a major investment vehicle for institutional investors.

This outflow, coupled with lower-than-usual inflows on other ETF products, suggests a potential pullback from some investors.

On-chain analysis firm CryptoQuant observed increased selling pressure, possibly fueled by short-term Bitcoin holders cashing out profits.

Also Read: Turn $1,000 Into $150 A Month? Explore These High-Yield Crypto Staking Options

These are investors who typically hold their tokens for less than five months.

The selloff extended beyond Bitcoin, impacting other major cryptocurrencies.

Ethereum ETH/USD, Solana SOL/USD, BNB Chain BNB/USD, and Cardano ADA/USD all experienced significant drops exceeding 9%, according to CoinGecko data.

The meme coin sector, known for its volatility and often fueled by social media hype, witnessed even steeper losses.

Data shows an average decline of over 17%, with Dogwifhat WIF/USD and Floki FLOKI/USD leading the downward trend at a staggering 18% drop each.

While meme coins have delivered impressive gains so far in 2024, their price movements are notoriously unpredictable and susceptible to rapid swings.

Read Next: Dogwifhat Meme NFT Auctioned For $4.3M To Enigmatic Trading Legend

Image created using artificial intelligence with Midjourney.

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