Large Crypto Selloff on Friday Drives Bitcoin Below $70,000

  • The outlook for cryptocurrency was dimmed by a decline in shares of speculative favorite GameStop and the repeated failure of plans to cut U.S. interest rates.
  • Bitcoin retreated after testing an all-time high earlier on Friday, losing the majority of its weekly gains.
  • When the speculative frenzy subsided, the selloff in the remaining bitcoin market was far greater.
  • Although the spot bitcoin ETFs have been accumulating for the longest time since their inception, the price rally has not been strong enough.

In U.S. trade on Friday, what was first perceived as a test of all-time highs for bitcoin (BTC) turned into a sharp decline, with the largest cryptocurrency in the world just holding onto a weekly gain.

Bitcoin was trading at $69,000 at the time of publication, down 2.5% from the previous day. 

Ether (ETH) dropped 4%, Tezos {{XTX}} and EOS {{EXOS}} 10%, and Solana (SOL) 7% among the CoinDesk 20 constituents.

The selloff has resulted in $450 million in liquidations, the most since a mid-April washout, according to statistics monitored by Coinglass.

After breaking beyond $72,000 earlier on Friday, bitcoin started to decline in the US morning hours with the release of the government’s much stronger-than-expected May employment data, which showed an increase of 272,000 jobs. 

That appeared to crush expectations of an impending Federal Reserve interest rate drop, driving up interest rates and the value of the dollar.

A few hours later, the bitcoin and cryptocurrency selloff really got going as Roaring Kitty hosted a much-anticipated YouTube livesteam for the first time in a few years. 

The trading icon may have let down fans hoping for a major announcement because he didn’t say anything noteworthy aside from his optimism that GameStop’s management will be able to turn the business into something very valuable in the years to come.

GME shares, which were already down for the day, dropped even more throughout the telecast, losing 40% for the session. Since Friday, the GME meme coin has dropped 50% from its peak. 

Other meme coins include pepecoin (PEPE), shiba inu (SHIB), and dogecoin (DOGE), which have all decreased by 15%, 10%, and 8% over the last 24 hours, respectively.

Bulls in bitcoin may find themselves perplexed as to what could be required for a genuine upward breakout in the interim. 

On Thursday, the spot ETFs concluded their eighteenth day in a row of inflows—a feat not even reached during the wild price spikes of February and March. According to HODL Capital, throughout that 18-day run, the ETFs amassed more than 56K bitcoins, or almost 7 times the total amount of bitcoin created during that time.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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