Bitcoin’s price took a significant hit, dropping by 4.74% from $71,918 to $68,507, marking a stark reversal from its recent gains. The cryptocurrency briefly flirted with an all-time high before plummeting during U.S. trading hours.
This sudden decline was part of a broader sell-off in the crypto market, exacerbated by a strong U.S. employment report for May, which indicated the addition of 272,000 jobs. This unexpected news dashed hopes of an imminent Federal Reserve interest rate cut, leading to a surge in interest rates and the value of the dollar.
The drop in Bitcoin’s price resulted in liquidations totaling over $411 million across the crypto market, with $361.29 million coming from long positions and $50.42 million from shorts. Ethereum (ETH), Solana (SOL), PEPE, and other cryptocurrencies also experienced significant liquidations, amounting to a combined $403 million.
Despite the decline, Bitcoin bulls are optimistic about a potential breakout to new highs. The Crypto Fear & Greed Index, a measure of market sentiment, dropped by 6% to 72, indicating that BTC sentiment remains in the ‘Greed’ territory, often seen as a signal of the final stage of a bull market.
Bitcoin’s exchange reserves decreased slightly, suggesting that investors may be moving their holdings to personal wallets, indicating a preference for holding onto their assets rather than selling.
Currently trading at $69,266 with a market cap of $1.36 trillion, Bitcoin’s daily trading volume surged by 36% in the past 24 hours to reach $35 billion. Spot ETFs have also seen a remarkable 18-day streak of consecutive inflows, accumulating over 56,000 Bitcoins during this period, nearly seven times the amount mined in the same timeframe, according to HODL Capital.
Despite the recent pullback, Bitcoin remains down approximately 5.96% from its all-time high of $73,750.