Bitcoin (BTC) price plummeted over 4% on Wednesday, hitting a daily low of around $59,712 during the early New York session. This unexpected 3.3% dip in the cryptocurrency market, bringing its value to approximately $2.34 trillion, resulted in over $140 million in forced long liquidations.
As the altcoin sector faces significant losses within the last 24 hours, many investors have turned to stablecoins for stability. Recent data from crypto oracles shows the total stablecoin market, now valued at about $160 billion, had an average daily trading volume exceeding $52 billion.
In contrast, Bitcoin and Ethereum combined reported a daily average trading volume of roughly $38 billion.
Later today, the United States Department of Labor will be releasing the unemployment claims, which is a strong indicator of economic health. Additionally, the US Federal Reserve will be releasing the FOMC meeting minutes, which will shed much-needed light on the economic outlook.
Notably, the Fed is expected to remain dovish ahead of the US general election and initiate interest rate cuts.
The US spot Bitcoin ETFs have registered notable fluctuations in cash flows in the recent past. After five days of positive cash inflows, the US spot Bitcoin ETFs register a total cash outflow of about $14 million on Tuesday.
The declining demand for spot Bitcoin ETFs amid the upcoming Mt.Gox distribution and heightened sales from the German government has significantly weighed heavily on bullish sentiment.
The listing of the approved spot Ethereum ETFs is forecasted to happen tomorrow, which will put the altcoin market in a higher spotlight. Already, the Bitcoin dominance has been forming a macro reversal pattern, which will accelerate the ongoing crypto cash rotation to the altcoin industry.
Also Read: Whale Sell-Off Crashes Crypto Market: LDO, AAVE, UNI & FXS Trading in Red
The market dynamics are evolving rapidly, with each of these factors playing a crucial role in the current crypto landscape. Investors and analysts will be keenly watching these developments as they unfold.
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