Crypto market saw massive selloff in the last 24 hours plunging the global crypto market cap by more than 2% from $2.57 trillion to a low of $2.29 trillion. Bitcoin (BTC) and Ethereum (ETH) prices tumbled 15% within 5 hours, and other altcoins including Solana (SOL), BNB, XRP, and Cardano (ADA) also fell. Dogecoin (DOGE) and Shiba Inu (SHIB) prices that saw huge rally amid meme coin frenzy also tumbled over 25%.

Bitcoin Miners and Whales-Driven Market Crash

The selloff happened immediately after the Bitcoin price broke a new all-time high of $69,200. CryptoQuant on-chain data on Miner Reserve and Miner to Exchange revealed a significant movement of BTCs to exchanges. These BTC movements triggered Bitcoin to tumble 15% from new highs of nearly $69,200 to $59,323 in the last 24 hours. BTC miner reserve has dropped to 1.82 million, reaching the 2021 level.

CoinGape also reported Satoshi era 1,000 bitcoins, valued at approximately $69 million, transferred to Coinbase. These Bitcoins’ movements happened from addresses associated with miners. BTC selling pressure by miners are rising as Bitcoin halving approaches.

Bitcoin Miner Reserve. Source: CryptoQuant

Whales also participated in the selloff with Whale Alert showcasing massive BTC, ETH, XRP, DOGE, SHIB, LTC, MATIC, and other altcoins dumped to crypto exchanges. Whales and market makers book massive profits from the recent crypto market rally.

Over $1 Billion in Liquidations

Overall the crypto market saw over $200 billion in market value lost in the recent liquidations as BTC price hit new ATH. Coinglass data indicates nearly $1.10 billion in crypto liquidations, with over 297K traders liquidated in the last 24 hours. The largest single liquidation order of XBTUSD valued at $9 million happened on crypto exchange BitMEX

Nearly 820 million longs and $235 million shorts were liquidated, with Bitcoin and Ethereum witnessing over $309 million and $185 million liquidated. This caused the crypto market to bleed, but it also offered a buy-the-dip opportunity.

Source: Coinglass

Macro Factors

Fed officials have already turned more cautious on rate cuts and expect the first rate cut in the second half of the year. Fed Chair Jerome Powell’s testimony ahead of House and Senate committees to provide a sharper view on monetary policy and rate cuts expectations amid mixed inflation data.

Meanwhile, the US Dollar Index (DXY) rose to 103.89. It has continued to remain volatile in the last few weeks. Moreover, U.S. Treasury yields rose as investors look for fresh economic data due this week that could provide more insights. The US 10-year Treasury yield is 4.158%, making a rebound in the last few days.

CME FedWatch Tool shows a higher probability of rate cuts in June after recent economic data. However, Wall Street pushed back their forecasts on first rate cut to July and September.

BTC Price Continues Upside on Strong Derivatives Data

While market participants book profits after recent rally and meme coin frenzy, derivatives data shows strength in the market. Funding rates have also dropped a bit after the recent crypto market selloff.

Bitcoin and Ethereum options remain higher as traders made higher calls than puts, with strong volumes. Bitcoin traders have over 14K calls for a strike price of $70K of notional value of $944 billion, indicating massive bullish sentiment.

Meanwhile, Bitcoin and Ethereum futures open interests are $32.85 billion and $13.19 billion, respectively. There has been a major shift from selling to buying in the last 4 hours, recording over 5% gain in OI across major cryptocurrencies.

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