The cryptocurrency market experienced a rollercoaster ride on June 8th, as Bitcoin (BTC) and Ethereum (ETH) saw sudden volatility in their prices. The BTC price settled around $69,000 after a dip that wiped out $1.3 billion in Bitcoin open interest.
The Cryptocurrency Crash and Aftermath
The trading session on Wall Street was labeled “schizophrenic” due to the release of confusing U.S. employment data. This was then followed by a rout in altcoins, triggered by a livestream by the pseudonymous investor Roaring Kitty. The market turmoil resulted in a flash crash, with BTC/USD hitting lows of $68,450 on Bitstamp and ETH/USD briefly falling below $3,600.
“It was confusing enough to trigger a risk-off ahead of US inflation numbers and FOMC next Wed,” stated QCP Capital in its update to Telegram channel subscribers.
The trading firm also noted that the Roaring Kitty livestream, which had nearly a million viewers, coincided with the collapse of GameStop (GME) stock price, leading to a widespread sell-off in altcoins and memecoins, with over $40 billion wiped from the market cap.
Key Bitcoin Price Levels and Opportunity
Despite the sudden volatility, the crypto market analysis identified potential support levels for Bitcoin. The monthly open around $67,500 was seen as a crucial level to hold, with the 64-65K range being the “last hope before destruction” for the current bullish bias.
The silver lining in this event was the leverage flush across Bitcoin and Ethereum, with BTC losing approximately $1.3 billion in open interest and ETH losing around $800 million, for a total of over $2 billion for the two largest cryptocurrencies.
Future Outlook and Opportunities
Notably, the crypto market analysis pointed to the potential benefits of the upcoming Federal Reserve meeting and macro data prints, which could positively impact risk assets like cryptocurrencies. This, combined with the leverage flush, was seen as a “good opportunity to buy the dip” by the trading firm.
The Cryptocurrency Crash and Aftermath
The trading session on Wall Street was labeled “schizophrenic” due to the release of confusing U.S. employment data. This was then followed by a rout in altcoins, triggered by a livestream by the pseudonymous investor Roaring Kitty. The market turmoil resulted in a flash crash, with BTC/USD hitting lows of $68,450 on Bitstamp and ETH/USD briefly falling below $3,600.
“It was confusing enough to trigger a risk-off ahead of US inflation numbers and FOMC next Wed,” stated QCP Capital in its update to Telegram channel subscribers.
The trading firm also noted that the Roaring Kitty livestream, which had nearly a million viewers, coincided with the collapse of GameStop (GME) stock price, leading to a widespread sell-off in altcoins and memecoins, with over $40 billion wiped from the market cap.
Key Bitcoin Price Levels and Opportunity
Despite the sudden volatility, the crypto market analysis identified potential support levels for Bitcoin. The monthly open around $67,500 was seen as a crucial level to hold, with the 64-65K range being the “last hope before destruction” for the current bullish bias.
The silver lining in this event was the leverage flush across Bitcoin and Ethereum, with BTC losing approximately $1.3 billion in open interest and ETH losing around $800 million, for a total of over $2 billion for the two largest cryptocurrencies.
Future Outlook and Opportunities
Notably, the crypto market analysis pointed to the potential benefits of the upcoming Federal Reserve meeting and macro data prints, which could positively impact risk assets like cryptocurrencies. This, combined with the leverage flush, was seen as a “good opportunity to buy the dip” by the trading firm.
