Why Are Bitcoin and Altcoins Down Today? Here’s Why!

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The global crypto market just dropped by 5.66%, leaving many investors wondering what’s going on. Bitcoin, which was recently aiming for a breakout above $109,000, has dropped back to around $104,000. That’s a 3.6% decline in just 24 hours.

And it’s not just Bitcoin—Ethereum, XRP, Solana, and even meme coins like Dogecoin have followed, falling anywhere between 6% to 15%.

So, what’s behind this sudden crash?

Fed Rate Cut Hopes Crushed

The biggest reason seems to be new signals from the U.S. Federal Reserve. After the latest inflation data came out, showing core CPI still above expectations and producer prices rising, the chances of a rate cut in June have nearly vanished.

According to Fed CME tools, the market now has a 97.4% chance that the Fed will not lower interest rates this month. That’s made investors nervous, and it’s showing in crypto prices.

Bitcoin ETFs See Big Outflows

Another major blow came from the spot Bitcoin ETFs. After several days of strong inflows, June 12 saw a sudden reversal, with $202 million flowing out. Leading the charge was Fidelity’s ETF alone saw a $197 million withdrawal, while ARK Invest’s ETF lost over $10 million.

Surprisingly, BlackRock stayed flat with zero inflows or outflows.

$1.15 Billion in Crypto Liquidations

Leverage traders took a big hit. In the last 24 hours, over 247,000 traders were liquidated, with total liquidations hitting $1.15 billion. The largest single liquidation order was a $201 million long on Binance.

If Bitcoin drops further to around $95,800, nearly $11.76 billion worth of long positions are at risk. That could trigger another wave of sell-offs.

Technical Charts Hint More Pain

Meanwhile, technically, indicators hint at more struggle for Bitcoin as charts show rejection near the $106K resistance zone.

Meanwhile, the MACD is showing a slight bullish crossover, but the momentum is weakening. If Bitcoin fails to hold $104K, we could see a retest of $102K or even $100K soon.

Altcoin Market Suffers Too

Altcoins are taking a big hit, closely following Bitcoin’s downward trend. The Altseason Index has dropped to 16, showing that Bitcoin still holds market dominance.

Among the biggest losers, Ethereum (ETH) fell by over 9.29%, now trading near $2,508. While XRP, Solana, and Cardano all saw major declines, with no signs of recovery just yet.

Crypto Pulpit