Crypto Market Crash: Here's Why Bitcoin, Ethereum, Altcoins Are Falling Sharply

The crypto market crashed on Saturday, with the global market cap dropping 6% to $1.04 trillion in the past 24 hours. The total liquidation comes in at $400 million over the last 24hrs as over 190,000 traders were liquidated. The largest single liquidation happened on the crypto exchange OKX, with ETH-USD-SWAP valued at $2.18 million.

Bitcoin price tumbles 4%, with major downfall coming within just 2 hours. BTC price fell to a 24-hour low of $25,500. Bitcoin currently trades near $25600, with a high probability of falling below the $25k level.

Ethereum price fell 6%, with the 24-hour low and high of $1765 and $1854. ETH price currently trades below $1750. The selling pressure continues to mount with increasing trading volumes.

Altcoins such as Filecoin, Polygon, Cardano, Solana, Chiliz, Sandbox, Decentraland, Axie Infinity, and others fell more than 25%. Shiba Inu (SHIB) lead the crypto market crash, falling 30% in the last 24 hours. Some buying from the dip is also recorded.

Also Read: Binance To Temporarily Suspend All Crypto Margin And Earn Related Services

Reasons Behind the Crypto Market Crash

Major liquidations were recorded in the cryptocurrencies mentioned in the US SEC lawsuits against Coinbase and Binance. However, the massive liquidation came in response to Binance.US stopping USD fiat support on the exchange and Robinhood delisting Solana (SOL), Cardano (ADA), and Polygon (MATIC).

US SEC mentioned BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as securities in the Binance lawsuit. The agency listed SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO as securities in the Coinbase lawsuit.

According to Coinglass, over $300 million in longs and $30 million in shorts were liquidated in the last 24 hours. The liquidations majorly happened on Binance, OKX, and Bybit, with BTC ($50M), ETH ($46M), ADA ($17M), SOL ($16M), LTC ($12M), DOGE ($11M), BNB (10M), FIL ($10M), and MATIC ($9M).

Crypto Market Liquidation. Source: Coinglass

Grayscale Investments has also filed a request with the US SEC seeking withdrawal of the Trust’s Registration Statement on Form 10 for Grayscale Filecoin Trust. The SEC staff continues to view Filecoin (FIL) as security. However, Grayscale says it will continue to believe that FIL is not a security.

Market makers such as Jump Crypto and Cumberland have pulled all the liquidity from altcoins. Market makers were caught dumping major crypto to exchanges Binance and Coinbase. Binance.US partners are reluctant to work with the exchange, causing a major selloff across the market.

Moreover, over 4 trillion Shiba Inu (SHIB) tokens worth millions were moved from Shiba Staking to crypto exchange Binance. It triggered a selloff in SHIB and BONE prices.

Scimitar Capital, the hedge fund rumored to be behind the massive $2 billion altcoin liquidation, said:

“Our fund has made the strategic decision to liquidate our crypto holdings and return the capital to our esteemed LPs. We believe this move will provide enhanced stability and opportunities.”

[BREAKING]

The fund that liquidated $2B of altcoins late Friday night in the broad crypto selloff is rumored to be Scimitar Capital pic.twitter.com/e23mbpuJda

— thiccy (@thiccythot_) June 10, 2023

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Varinder Singh

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