Bitcoin’s Big Friday Selloff: What Went Wrong?
The crypto market was in for a rude awakening on Friday as bitcoin’s price plummeted below $70,000, wiping out most of its weekly gains. The selloff was not limited to bitcoin, as the broader cryptocurrency market felt the heat, with the CoinDesk 20 Index falling by 5% over the same period.
The GameStop Effect
The selloff in bitcoin and the broader crypto market was triggered by a stronger-than-expected jobs report in the US, which dashed hopes of an imminent interest rate cut by the Federal Reserve. This led to a surge in interest rates and the dollar, causing a ripple effect in the crypto market. However, the real catalyst for the selloff came later in the day when Roaring Kitty, a trading legend, held a highly anticipated YouTube livestream. The event failed to impress, leading to a sharp decline in GameStop shares, which in turn affected the crypto market.
GameStop shares took a hit on Friday
The Crypto Selloff
The selloff in crypto was widespread, with ether, Tezos, and EOS falling by 4%, 10%, and 10%, respectively. Solana was not spared either, falling by 7%. The selloff led to $450 million in liquidations, the largest amount since mid-April.
Cryptocurrency prices took a hit on Friday
The ETF Factor
Despite the selloff, spot bitcoin ETFs continued their accumulation streak, with 18 consecutive days of inflows. This streak has seen the ETFs accumulate over 56,000 bitcoins, nearly 7 times the amount of bitcoin mined during the same period. However, this was not enough to sustain a rally in price.
Bitcoin ETFs continue to accumulate
The Road Ahead
The selloff on Friday has left bitcoin bulls scratching their heads, wondering what it will take for a true upside breakout. With the ETFs continuing to accumulate, the stage is set for a potential rally. However, the crypto market remains volatile, and only time will tell what the future holds.
Bitcoin’s price chart shows a sharp decline
