• 26 May, 2024
Markets News

Crypto Market Plummets: $70 Billion Wiped Out in 24 Hours – What’s Next?

The recent crypto market selloff has sent shockwaves across the financial world, resulting in a $70 billion liquidation within the last 24 hours. This significant downturn follows a period of heightened volatility, sparking discussions among investors and analysts alike.

One of the primary catalysts for the recent crypto market selloff can be attributed to economic data from the United States, which fell short of market expectations. The Bureau of Economic Analysis released GDP figures indicating a sluggish growth rate of 1.6%, compared to the anticipated 2.5%. Moreover, inflationary concerns were exacerbated as the Core PCE Price Index surged to 3.7% in the first quarter, surpassing forecasts.

Consequently, these gloomy economic indicators have dampened investor sentiment and raised worries about a potentially hawkish stance from the Federal Reserve. The U.S. Personal Consumption Expenditures (PCE) inflation data further fueled apprehensions, with a year-on-year surge to 2.7%, exceeding market forecasts.

Compounding the market downturn, outflows from the U.S. Spot Bitcoin ETF over three consecutive days signaled a cooling sentiment among institutional investors. Notably, significant withdrawals from major players in the cryptocurrency arena, including Grayscale’s GBTC, Fidelity’s FBTC, and Bitwise’s BITB, contributed to downward pressure on prices.

On April 26 alone, outflows from the U.S. Spot Bitcoin ETF amounted to $83.6 million, exacerbating the crypto market selloff. As a result, the global cryptocurrency market cap experienced a substantial decline, shedding nearly $70 billion within 24 hours.

However, amidst the turbulence, some investors have seized the opportunity to accumulate digital assets at discounted prices, hinting at underlying resilience in the market. Despite the selloff, the crypto market capitalization stood at $2.32 trillion, showcasing the continued interest and belief in the long-term potential of cryptocurrencies.

Meanwhile, individual cryptocurrency prices have fluctuated in response to market dynamics. Bitcoin lost 2.23% over the last 24 hours, trading at $62,950.61, while Solana retreated over 5.13% to $135.89. XRP fell 1.78% to $0.513136, and the leading meme coin, Shiba Inu, plunged 4.67% to $0.00002463.

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