Crypto Market Selloff: Here’s Why Bitcoin, ETH, SOL, XRP, SHIB Fell Today

The crypto market flashes fresh signs of weakness as bull and bear clash over dominance. Investors have lost nearly $150 billion in the last few days, as the crypto market cap tumbled from $2.42 trillion to $2.28 trillion. Bitcoin and altcoins failed to sustain upside momentum and continue to fall amid a lack of trading volumes in spot and derivatives markets.

Has the market trend changed as crypto struggles to overcome macroeconomic concerns? The Crypto Fear & Greed Index revealed a shift in trend and sentiments since May 6. The index dropped from 71 to 64 in three days, with technical charts looking weak.

Crypto Market Selloff As Bitcoin Price Loses Momentum

Bitcoin price tumbled below $62,000 in US hours as traders booked profits or liquidated long positions. BTC price has dropped over 5% this week, with over 1% fall today, May 8. Trading volume has dipped further in the last 24 hours.

Bitcoin tumbled due to various reasons including hawkish remarks from Fed officials including Neel Kashkari, regulatory crackdown, upcoming options expiry, and weak patterns. The recent remarks spook the crypto market regardless of dovish comments by Fed Chair Jerome Powell and positive economic factors last week.

Max pain price for Bitcoin this expiry is $62,000, with traders bracing for a crash if BTC price falls below the level. Notably, pull bets are higher on the days following expiry, with 62,500 and 60,500 key levels to watch. Despite this, analysts remain optimistic on Bitcoin price rally this year as stagflation concern eases.

Meanwhile, the US dollar index (DXY) climbed higher for three consecutive days at 105.50, the highest level since mid-November. Traders await further comments from Fed officials for guidance on market direction and economic outlook. As per current data, the Fed is likely to cut interest rates in September.

Moreover, the US 10-year Treasury yield (US10Y) jumped today to 4.481%. As Bitcoin moves opposite to DXY and Treasury yields, the rise in numbers indicates pressure still growing on Bitcoin.

Bitcoin is still under consolidation and needs to break above $63,700 in short-term for recovery and $70,000 for rally, ending the crypto market selloff. BTC dominance is currently at 53.4%.

Crypto Market Liquidation

Coinglass data shows more than $400 million were liquidated across the crypto market in the last few days. Of these, $330 million long positions were liquidated and nearly $70 million short positions were liquidated.

In the last 24 hours, over 65K traders were liquidated and the largest single liquidation order happened on crypto exchange OKX as someone swapped ETH to USD valued at $3.86 million.

Ethereum (ETH) prices tumbled below $3,000, triggering a weak trading and selloff in altcoins. Solana (SOL), BNB, XRP, Dogecoin (DOGE) and Shiba Inu (SHIB) prices fell 2-6% in the last 24 hours.

Also Read:

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