Markets experienced a significant downturn on Friday, as Bitcoin plunged below the $67K mark for the first time since April 4, triggering over $850M in liquidations within a single day. The S&P 500 and gold were not spared, recording declines of 1.5% and 3.4% respectively. This simultaneous retreat across various asset classes highlights growing concerns among investors about potential hikes in consumer prices and overall inflation.
Santiment, a market intelligence platform with on-chain and social metrics for cryptocurrencies, shared this insight on X, highlighting a broad market retreat as Bitcoin, S&P500, and Gold all pulled back significantly.
Bitcoin’s sharp 5% decline underscores the volatile nature of cryptocurrency investments, particularly in times of economic uncertainty. Moreover, the substantial liquidations suggest that many investors were caught off guard, possibly over-leveraged, and compelled to sell off assets to meet margin requirements.
Gold typically serves as a hedge against inflation, yet the fall in its price indicates that even traditional safe havens are not immune to the broader economic tremors currently shaking the markets. Similarly, the S&P 500’s decline further exemplifies the widespread nature of the sell-off, driven by fears that persistently high inflation could prompt tighter monetary policy sooner than expected.
As per data from CoinMarket Cap, the current global market performance of the total crypto market cap has declined by 7% to $2.45 trillion. However, the total trading volume has seen an impressive uptick, climbing to $140.54 billion, an increase of 78%. Bitcoin’s dominance is at 54.2%, while the fear and greed index displays a greed sentiment at 72.
As of press time, Bitcoin is trading at $67,470, down over 5% in the past 24 hours, as bearish activity holds the ground tight. Over the past week, BTC has erased much loss as the price has retested the $70k region. On the monthly chart, the leading asset has lost over 6%, indicating a bearish sentiment surrounding its market.
The market capitalization has dropped below the $1.4 trillion mark to $1.32 trillion, a decline of 4%. However, the trading volume is on the rise, recording an increase of 50% with a value of 48 billion, suggesting heightened activity in the market.
Despite reclaiming the $70k mark a few days ago, BTC has faced a steady pullback, seeking support at the $65k region. Should the current trend hold, BTC could face a further decline toward the $62k region, which could act as key support. However, should the Bulls make a comeback, BTC could rally toward the $70k mark and recover from the recent losses.
