Bitcoin ETF

Shiba Inu

Spot

<p><strong>Crypto Market Selloff:</strong> The digital asset sector has noted a sharp decline today, with the overall market retreating nearly 3% today in the last 24 hours. Meanwhile, the recent slump in the major cryptos like Bitcoin, Ethereum, DOGE, BNB, LINK, and others, has sparked discussions in the market over the potential reasons.</p> 
<p>So, let’s take a look at the possible reasons that have fueled the recent crypto market selloff.</p> 
<h2 id="potential-reasons-behind-the-recent-crypto-market-selloff">Potential Reasons Behind The Recent Crypto Market Selloff</h2> 
<p>A series of factors could have triggered the recent crypto market selloff today. Here we explore the top reasons that might have impacted the sentiment of the broader crypto market.</p> 
<h3 id="bitcoin-etf-outflow-fuels-concern">Bitcoin ETF Outflow Fuels Concern</h3> 
<p>The U.S. Spot Bitcoin ETF has reversed its track after noting inflows for five straight days through July 1. Over the last five days, the <a href="https://coingape.com/bitcoin-etf-gain-momentum-with-129m-inflows-will-btc-price-recover/" target="_blank" rel="noopener">U.S. Bitcoin ETF</a> has recorded the highest influx of $129.5 million on July 1. This move has fueled the market sentiment over regaining the confidence of the institutional interests towards the flagship crypto.</p> 
<p>However, the overall scenario took a different turn on July 2, with U.S. Spot Bitcoin ETFs recording an outflow of $13.7 million. Despite inflows of $14.1 million and $5.4 million from BlackRock IBIT and Fidelity’s FBTC, the outflux of $32.4 million from GrayScale has allayed the gains.</p> 
<p>This move might have once again weighed on the investors’ sentiment, who are still seeking clarity on the market momentum. The recent outflux after a five-day winning streak also indicates that the institutions are taking a pause before making further bets in the sector.</p> 
<h3 id="friday-options-expiry">Friday Options Expiry</h3> 
<p>The Bitcoin ETF outflow has triggered volatility in BTC, potentially impacting the broader crypto market. Apart from that, the massive upcoming options expiry also seems to have impacted the risk-bet appetite of the investors.</p> 
<p>Notably, the recent crypto market selloff could be primarily attributed to the upcoming expiration of significant BTC and ETH options. Data from Deribit reveals that BTC options with a notional value exceeding $1.04 billion and a put/call ratio of 0.80 are set to expire on Friday, July 5, with a maximum pain price of $63,000.</p> 
<figure id="attachment_205629" aria-describedby="caption-attachment-205629" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class=" wp-image-205629" src="https://coingape.com/wp-content/uploads/2024/07/Bitcoin-Options-Expiry-July-5.png" alt="Bitcoin Options Expiry" width="752" height="312" srcset="https://coingape.com/wp-content/uploads/2024/07/Bitcoin-Options-Expiry-July-5.png 1897w, https://coingape.com/wp-content/uploads/2024/07/Bitcoin-Options-Expiry-July-5-300x124.png 300w, https://coingape.com/wp-content/uploads/2024/07/Bitcoin-Options-Expiry-July-5-1224x507.png 1224w, https://coingape.com/wp-content/uploads/2024/07/Bitcoin-Options-Expiry-July-5-768x318.png 768w, https://coingape.com/wp-content/uploads/2024/07/Bitcoin-Options-Expiry-July-5-1536x636.png 1536w, https://coingape.com/wp-content/uploads/2024/07/Bitcoin-Options-Expiry-July-5-150x62.png 150w" sizes="(max-width: 752px) 100vw, 752px">
 <figcaption id="caption-attachment-205629" class="wp-caption-text">
  Source: Deribit
 </figcaption>
</figure> 
<p>Similarly, ETH options worth $479.30 million, with a put/call ratio of 0.38 and a max pain price of $3,450, will also expire. The impending expiries are creating uncertainty and influencing market behavior, as traders adjust their positions ahead of the deadline.</p> 
<figure id="attachment_205630" aria-describedby="caption-attachment-205630" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class=" wp-image-205630" src="https://coingape.com/wp-content/uploads/2024/07/Ethereum-Options-Expiry-July-5.png" alt="Ethereum Options Expiry" width="752" height="308" srcset="https://coingape.com/wp-content/uploads/2024/07/Ethereum-Options-Expiry-July-5.png 1892w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-Options-Expiry-July-5-300x123.png 300w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-Options-Expiry-July-5-1224x501.png 1224w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-Options-Expiry-July-5-768x315.png 768w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-Options-Expiry-July-5-1536x629.png 1536w, https://coingape.com/wp-content/uploads/2024/07/Ethereum-Options-Expiry-July-5-150x61.png 150w" sizes="(max-width: 752px) 100vw, 752px">
 <figcaption id="caption-attachment-205630" class="wp-caption-text">
  Source: Deribit
 </figcaption>
</figure> 
<p><strong>Also Read: <a href="https://coingape.com/ripple-and-coinbase-use-binance-win-to-contest-sec-claims/" target="_blank" rel="noopener">Ripple and Coinbase Use Binance Win to Contest SEC Claims</a></strong></p> 
<h3 id="ethereum-etf-launch-delay">Ethereum ETF Launch Delay</h3> 
<p>The crypto market was highly anticipating the Spot Ethereum ETF approval by the <a href="https://coingape.com/us-sec-delays-spot-ethereum-etf-launch-sends-back-s-1-forms/" target="_blank" rel="noopener">U.S. SEC</a> this week. However, a potential delay might have sparked concerns among the investors.</p> 
<p>Meanwhile, looking at the latest market trends, ETF Store president Nate Geraci said that the <a href="https://coingape.com/spot-ethereum-etf-to-go-live-on-july-15-eth-bull-run/" target="_blank" rel="noopener">U.S. Spot Ethereum ETF</a> might launch on July 15. Besides, Bloomberg also hinted at a mid-July launch for the Ether ETF to go live in the U.S.</p> 
<h2 id="crypto-market-faces-over-120m-liquidation">Crypto Market Faces Over $120M Liquidation</h2> 
<p>The recent selloff in the crypto market has caused a liquidation of $123.62 million over the last 24 hours, CoinGlass data showed. In the same timeframe, around 45,000 traders were liquidated with the largest single liquidation taking place on OKX – ETH-USDT-SWAP worth $3.36 million.</p> 
<p>Bitcoin faces liquidation of $34.74 million, while Ethereum’s liquidation stood at $32.87 million. However, despite the recent crypto market selloff, some analysts are still optimistic about the future performance of the market. Given the declining value and anticipation over Ethereum ETF approval this month, the crypto market might witness robust gains in the coming days.</p> 
<p>However, with <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener">Bitcoin price</a> currently crossing the brief $61,000 mark, the risk still prevails in the market. In a recent analysis, popular crypto market expert Ali Martinez warned of over $1 billion liquidation if BTC hits the $62,600 mark.</p> 
<figure style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" src="https://pbs.twimg.com/media/GRiFTheXcAA1hcN?format=jpg&amp;name=large" alt="Bitcoin Exchange liquidation Map" width="750" height="932">
 <figcaption class="wp-caption-text">
  Source: Ali Martinez, X
 </figcaption>
</figure> 
<p>As of writing, <a href="https://coingape.com/price/ethereum/" target="_blank" rel="noopener">Ethereum price</a> dropped nearly 3% in the last 24 hours, while <a href="https://coingape.com/price/dogecoin/" target="_blank" rel="noopener">Dogecoin price</a> fell 1.3%. Simultaneously, the <a href="https://coingape.com/price/binance-coin/" target="_blank" rel="noopener">BNB price</a> noted a slump of 2.5% to $566.23, and <a href="https://coingape.com/price/shiba-inu/" target="_blank" rel="noopener">Shiba Inu price</a> slipped 1.34% to $0.00001695.</p> 
<p>Also, CoinGlass data showed that Bitcoin Futures Open Interest (OI) fell about 4% from yesterday, while Ethereum OI slipped about 1.4%. This data also highlights the gloomy sentiment dominating the crypto market.</p> 
<p><strong>Also Read: <a href="https://coingape.com/genesis-digital-is-considering-going-public-via-ipo-in-us-report/" target="_blank" rel="noopener">Genesis Digital Is Considering Going Public Via IPO In US</a></strong></p> 
<p>The post <a href="https://coingape.com/crypto-market-selloff-why-bitcoin-eth-doge-shib-prices-are-falling-today/">Crypto Market Selloff: Why Bitcoin, ETH, DOGE, SHIB Prices Are Falling Today?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.</p>

Crypto Market Selloff: Why Bitcoin, ETH, DOGE, SHIB Prices Are Falling Today?

Table of Contents

Coingape News Media

Other articles published on Jul 3, 2024

XRP Decreases More Than 3% Within 24 hours

SOL/BTC Price Prediction: Solana Price Struggles to Rise Amid Bitcoin’s Uncertainty

Ripple Challenges SEC’s Regulatory Approach in Ongoing Legal Battle

Here’s Why, Bitcoin experiences a sharp decline

SingularityNET Offers Decentralized AI Services

As Bitcoin recovers, are analysts predicting a ‘relief rally’ ahead?

Join our free newsletter for daily crypto updates!