The cryptocurrency market meltdown continued on Thursday as fears of rising inflation and potential rate hikes weighed on investor sentiment
Crypto Market Turns Bloody Red
Bitcoin’s descent showed no signs of slowing down, as the apex cryptocurrency fell below $59,000. Ethereum plummeted to an intraday low of $1,531, while XRP and Dogecoin extended their losses.
Over $890 million was liquidated from the cryptocurrency market in the last 24 hours, with long position traders bearing the brunt of the losses, according to Coinglass data
Bitcoin’s open interest rose 0.38% over the last 24 hours, in contrast to the spot price dip, a move that often points to fresh short interest entering the market.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.09 trillion, following a drop of 2.22% over the last 24 hours.
Stocks Sink Lower As Inflation Worries Mount
Major indexes closed further down on Thursday. The S&P 500 slid 0.01% to 7,357.49, while the tech-focused Nasdaq Composite dropped 0.46% to settle at 25,358.60. The Dow Jones Industrial Average bucked the decline, rallying 71.72 points, or 0.14%, to close at 51,920.62.
The headline Personal Consumption Expenditure price index, considered the Federal Reserve’s preferred inflation gauge, reached a 3-year high of 4.1% in May, as energy price pressures continued to spread through the broader economy.
The CME Group’s FedWatch tool showed traders pricing a 48% chance of the Fed increasing rates during the September meeting.
Will Bitcoin See A Relief Rally In July?
Rekt Capital, a popular cryptocurrency chartist, reiterated a historical Bitcoin summer pattern: a red June close, followed by a potential post-breakdown relief rally in July.
The analyst drew parallels with 2022-like macro conditions, where any July relief rally would likely face resistance at the 50-month exponential moving average, currently around $63,000.
Ali Martinez, a widely followed cryptocurrency analyst and trader, highlighted that Ethereum is in a “crucial” block between $1,584 and $1,683, where nearly 4 million tokens traded.
“Securing this specific area as support opens the path to the next major supply clusters at $1,980 and $2,079,” the analyst said. “However, losing this baseline risks a deeper breakdown toward the demand zones at $1,237 or even $1,089.”
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