Crypto Market Plunges as Bitcoin Fails to Break $67,000
The cryptocurrency market has taken a downturn, with Bitcoin plummeting to around $63,877. This decline follows Bitcoin's failed attempt to break through the $67,000 area earlier in the week.
Several factors have contributed to this market slide, including rising oil prices and inflation concerns. These risks have triggered a risk-off rotation within crypto, causing capital to retreat from altcoins and BTC dominance to climb to 59%. The surge in crude oil prices, reaching above $100 a barrel, has also led to a sharp decline in US equities.
Additionally, spot Bitcoin ETFs recorded their first outflows in seven days on July 23rd, even with the price holding above $64,000. This matters because inflows were the main factor supporting the July bounce.
The market also saw total liquidations hit $282 million on July 24th, with $192 million of that from long positions. Furthermore, $1.43 billion in Bitcoin and Ethereum options expired on the same day, leading to deteriorating sentiment and a Fear and Greed Index reading of 37, firmly in fear territory.
Geopolitical tensions between the US and Iran have also contributed to this market downturn, with renewed hostilities creating a broader risk-off mood. The bad news from the industry itself has not helped, with Poolin Technology filing for Chapter 11 bankruptcy in the US with liabilities between $100 million and $500 million.
The only divergence within the privacy sector is Monero, which has seen a slight gain of 2.74% on the day and nearly 12% on the week. However, this appears to be rotation within a theme rather than fresh money entering it.