After recording a positive price action for 2 consecutive days, the cryptocurrency market has displayed a correction of 1.78% over the past 24 hours with a trading volume of $96.86 billion, a change of -25.57%. With this, investors are trying to understand the possible reasons for the recent price action.
As a result, multiple reasons were anticipated to be the major cause of a sudden price drop.
BTC Witnessed Increasing Whale Selloff!
Over the past 24 hours, seven dormant whales have woken up once again. Notably, a total of $7.6 billion worth of Bitcoin. These whales are inactive from the past 14 years and were last activated between April & May 2011. This has resulted in BTC price dropping below its $108,000 mark.
Considering the present market sentiments, the Bitcoin price could retest its upper resistance of $110,500 within a short period. However, a bearish action could result in it dropping toward its low of $105,000 in the upcoming time.
Cryptocurrency Market Experiences More Liquidations!
The below chart shows the variation between Bitcoin (BTC), Ethereum (ETH), and XRP futures over the recent times. Notably, Bitcoin has a little bit more short against long over the 12H and 24H time frames. As per the data, 51.53% and 51.29% shorts respectively.
The largest altcoin, Ethereum, has lost 3.22% over the last day and is currently valued at $2,492. Moreover, the shorts occurred at 51.42%, suggesting bearish forces. However, when compared with short-term (1H) sentiment that is a report of 57.61% long.
On the other hand, the XRP price is currently at $2.217 and shows a steady bearish trend in all the timeframes with shorts constituting 52.26% over 24h. Additionally, the short term players are long and long term players are short indicating a note of caution in the larger market.
Diminishing hopes of Fed rate cut
With the next FOMC meeting only 26 days away, the chances of a FED rate cut in July is extremely less. Currently, the target rate ranges between 425 to 450, while the chances to drop to 425 or 400 has reduced to only 4.7% today. The chance was 28.5% on 04th of June.
The uncertainty is on a constant rise, suggesting that a significant turn of events can be witnessed anytime.
Also Read: Mercado Bitcoin Teams up with Ripple to Tokenize $200M on XRP Ledger
