The digital currency ecosystem is in the red today as Bitcoin’s (BTC) slump compounded a week-long bearish trend. At the time of writing, the combined crypto market capitalization has dropped by a massive 7.66% to $2.16 trillion.
Bitcoin, Altcoin Bears on Rampage
Bitcoin is leading the current market correction as its price breached the support at $60,000. At the moment, the coin is priced at $57,242.57, down by 9.22% in 24 hours. This price slump has returned Bitcoin to its lowest level since February 28.
Altcoins were also notably dragged into the abyss as well with Ethereum (ETH) down by 9.27% to $2,880.13. Solana (SOL) is down by 11.32% to $12059% while Binance Coin (BNB) shed off 9.13% to trade for $547.79.
With most coins market-wide dropping, only Cosmos (ATOM) has bucked the bearish trend. The coin is up 2.66% overnight with its price pegged at $8.31.
This selloff has triggered more than $465 million in liquidations with over 142,000 traders “rekt.” Bitcoin led the liquidations with $159.21 million erased in 24 hours. Of this sum, long traders suffered $143.04 million in liquidations while short traders saw $16.71 million in selloffs. For Ethereum, the liquidations topped $121 million.
With the market outlook, traders are in a fix with no idea where the market is heading.
Macro Economic Considerations
While the reason behind the drop remains unknown, sentiments tilt toward the Federal Open Market Committee (FOMC) announcement in view. With potential plans to keep rates higher, expectations that the stock market will rebound are influencing investor positioning.
The impact of spot Bitcoin ETF is no longer triggering intensive accumulations. The Bitcoin halving event has equally failed to reshape sentiment as investors neglected the sound metrics that helped Bitcoin attain its most recent All-Time High (ATH) of $73,750.07.
As the broader market faces the ongoing depression, analysts believe the bearish trend will wear off naturally, hence traders can only sit out the selloffs. Projections of a massive Bitcoin surge remain on the horizon with targets ranging from $100,000 to $1 million.
