NewsletterCrypto Market Selloff: Here’s Why Bitcoin, Ethereum Price Falling Today
The crypto market fell sharply in Asia hours on May 31, giving up earlier gains. The global crypto market cap decreased by 1.37% to 1.14 trillion, with top cryptocurrencies Bitcoin and Ethereum price tumbling 2% each.
Investors as expected are liquidating their holdings as a result of BTC price closing the month 8% lower for the first time this year. Bitcoin price rallied 85% this year, but the rally started fading in mid-April and even dropped below the key 200-WMA level.
Ethereum, despite showing strength, remains under pressure due to Bitcoin being stuck in a range for weeks and the debt ceiling deal. Whales and institutional investors are bullish on Bitcoin and Ethereum, but a short-term fall is expected as the debt ceiling deal will push US Treasury Dept. to issue T-bill that will pull out US dollar liquidity.
Also Read: Binance Expands Support For Cardano (ADA) And Litecoin (LTC)
Here’s Why Bitcoin and Ethereum Price Falling Sharply
Bitcoin price is currently trading below a key resistance zone after a short-squeeze momentarily move up prices during a low liquidity long weekend with near equal lows below. BTC Open interest is down to 8.5 billion as some longs are being liquidated to fill the CME gap. However, BTC prices can still move higher.
Over $80 million in crypto liquidation was recorded in the last 24 hours, with $25 million and $14 million liquidated in BTC and ETH, respectively. The liquidation is still low as compared to earlier but the macro factors such as Japan and China factory data come in lower.
The hawkish tone from the dovish Bank of Japan central bank led to a crypto market fall in Asian hours. Bank of Japan Governor Kazuo Ueda on May 31 warned of tightening as high inflation weighs on the country. The global stock market fell with European and the US market expected to open lower.
BTC price is at an inflection point. If Bitcoin tumbles to 200-WMA, Ethereum will head down below $1800 and other altcoins will follow. BTC price currently trades near $27000 and ETH price is trading at $1850. The crypto market action during the US hours will possibly confirm the sentiment in the market.
Also Read: Bitcoin (BTC) To Hit $30K As Early Signs Of Institutional Buying Appears
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Just-In: Startale Launches Super App for Sony’s Soneium Blockchain Ecosystem
- Breaking: Canary XRP ETF Gets Approval with 8-A Filing to List on Nasdaq
- New Draft Crypto Market Structure Bill: Everything You Need to Know
- Uniswap Launches UNIfication to Overhaul Governance Model: Report
- Vivek Ramaswamy’s Strive Acquires $162M in Bitcoin, Surpasses Galaxy Digital in BTC Holdings
- Cardano Price Could Reclaim $0.7 After Key Stakeholders Add $204M in ADA
- Uniswap Price Rockets 21% Amid Fee Switch and Token Burn Proposal — Is $15 the Next Target?
- Bitcoin Price Eyes Bulls as Crypto Market Structure Bill Draft Finally Drops
- SUI Price Prediction: Analyst Eyes $20 Amid Bluefin Partnership and 2M Token Lending Deal
- HBAR Price Prediction: Analyst Eyes 90% Surge Amid Taker Buy Dominance
- Expert Predicts 200% Shiba Inu Price Surge as Open Interest, Burn Rate Spikes
