In the early hours of the US trading session, the cryptocurrency market experienced a sudden selloff, resulting in over $30 million being liquidated within just an hour. Bitcoin, the leading cryptocurrency, saw its price dip from $63,340 to a low of $61,600, marking a 6% intraday decrease. Ethereum, another major player, briefly fell below the $3,000 mark due to numerous liquidation orders triggered by negative sentiment ahead of Bitcoin's halving event. Other popular altcoins like BNB, SOL, XRP, DOGE, TON, ADA, and SHIB also witnessed price declines ranging from 2% to 3% within the same hour. Particularly, Solana and Toncoin saw significant drops of 14% and 15% respectively over the past 24 hours.

The sudden drop in Bitcoin's price was attributed to a combination of factors, including a pre-halving correction, macroeconomic concerns, and geopolitical tensions. Additionally, a lack of significant buying activity from large investors and whales further contributed to the downward pressure on BTC price. According to Coinglass data, over $330 million worth of cryptocurrencies were liquidated during this market correction, with $260 million from long positions and nearly $70 million from short positions on Tuesday alone. Notably, more than 109,000 traders were liquidated, with the largest single liquidation order occurring on the OKX exchange, involving an ETH to USD swap valued at $5.97 million.

Technical indicators such as the Bollinger Bands and Ichimoku Cloud suggest that Bitcoin's price is currently in a downward trend, struggling to surpass the 20-simple moving average and remaining below key support levels. Julio Moreno, head of research at CryptoQuant, echoed sentiments shared by other analysts, expressing concerns about slowing demand growth for Bitcoin from ETFs and long-term holders leading up to the halving event.

Analyst Michael van de Poppe predicts a potential drop to $55,000 for Bitcoin, citing lower timeframe rejections, but remains optimistic about a gradual upward momentum thereafter. The ongoing global macroeconomic events, including a rise in the US dollar index (DXY) and the 10-year Treasury yield, have also contributed to the decline in Bitcoin's price, as it tends to move inversely to both indicators. Federal Reserve Chair Jerome Powell and Vice Chair Philip Jefferson are expected to make public comments, potentially impacting market sentiment with their remarks on interest rates and inflation.

In conclusion, the cryptocurrency market experienced a significant selloff, with Bitcoin's price dropping below $62,000 and triggering over $330 million in liquidations. Various factors, including technical indicators, macroeconomic events, and regulatory sentiment, have contributed to the current market conditions, highlighting the volatility inherent in the cryptocurrency space.