- The crypto market plummets below $1T as altcoins bleed.
- Robinhood delisting triggers significant losses for Cardano, Solana, and Polygon.
- Tether supply surge hints at potential market revitalization.
The cryptocurrency market is in turmoil, with a significant 7% drop pushing it below the $1 trillion threshold. It’s a real massacre, partly precipitated by Securities and Exchange Commission (SEC) measures. Amid this turmoil, Bitcoin, the reigning champion, dropped 3.75% to $25,500. while Ethereum, the runner-up, plummeted 6.9% to nearly $1,700, its lowest level in two months.
Robinhood Pulls the Plug on Altcoins, Markets Stumble
Adding to the grim picture, Robinhood’s unexpected move to delist “unregistered securities” sent the market into a frenzy. On June 9, Robinhood announced the removal of Cardano, Solana, and Polygon from its platform, citing an ominous “cloud of uncertainty” amid the SEC’s crackdown. These tokens were hit the hardest, with drops of 22%, 25%, and 30%, respectively.
Furthermore, Crypto.com has suspended its institutional investment services in the U.S., and rumors of Binance offloading $392 million in crypto assets in the last 24 hours have increased market tension.
According to our data, last 24hrs, @Binance net outflow is about $392m.
— CZ 🔶 Binance (@cz_binance) June 10, 2023
Our wallet addresses are public. Some 3rd party analytics measure Change in AUM (asset under management) in USD equivalent as outflow. This would include crypto price drops (which decrease AUM) as "outflow".…
Consequently, the industry finds itself in a precarious position, with the Bitcoin price falling, liquidating long positions worth more than $340 million in just 24 hours.
A Glimmer of Hope Amid the Chaos
Nevertheless, amidst this chaos, there are potential future buying activity signals. In particular, the supply of Tether, the market’s leading stablecoin, has surged. This influx points towards substantial flows from cryptocurrencies to Tether. Notably, most of these Tether holders are significant investors, further substantiating the potential for market revitalization.
Simultaneously, the crypto market cap slipping below its long-term support of the 200-week exponential moving average (EMA) does raise its downside risks in 2023. Analysts are predicting a further 25% drop from current levels, down to a market cap of $875 billion.
However, despite the present adversity, seasoned crypto-watchers note that these fluctuations are familiar to Bitcoin and its crypto counterparts. They argue that the weekly chart’s inverse-head-and-shoulders pattern predicts a possible market rebound. This potential rebound could see the crypto market cap doubling to around $2.23 trillion by 2023-2024.
In sum, the crypto markets are undergoing a significant shake-up right now. However, with signals indicating potential future buying and historical market resilience, there’s hope that this ‘bloodbath’ is just a short-term hiccup.
