The crypto market is experiencing a significant decline, with investors losing billions as the market cap plunges from $2.44 trillion to $2.33 trillion in the last 24 hours. Coinglass data indicates nearly $500 million worth of crypto were liquidated, with Ethereum (ETH), Bitcoin (BTC), Dogecoin (DOGE), Shiba Inu (SHIB), and Solana (SOL) leading the liquidation.

What's Behind the Crypto Market Decline?

The crypto market selloff was triggered by Bitcoin losing upside momentum due to factors such as macroeconomics, miner capitulation, Bitcoin ETF outflows, and lack of new stablecoin issuance.

Popular cryptocurrencies worth $500 million were liquidated in the last 24 hours, as per Coinglass. Over 173K traders liquidated in the last 24 hours, with the largest single liquidation order on crypto exchange Binance as someone sold ETH valued at $6.44 million.

Macro and geopolitical factors are behind the latest slump. Despite a cooling US CPI and PPI inflation data, the Fed officials adhere to the FOMC's decision of a single rate cut this year. The Bank of Japan's Governor Kazuo Ueda is hawkish on raising interest rates again at the July meeting.

As a result, the US Dollar Index (DXY) increased to 105.4 today, continuing to remain volatile in the last few days. Moreover, U.S. Treasury yields also rose to 4.298% as investors look for fresh cues due this week that could provide more insights on the market direction.

Bitcoin Price Dropping Towards $60K

As CoinGape reported, Over 100K BTC options of notional value $6.58 billion are set to expire on June 28, per the largest derivatives exchange Deribit. With a put-call ratio of 0.50 and the max pain point at $55,000, it indicates Bitcoin price may continue to remain under selling pressure until then.

BTC price currently trades at $65,597, down 1% in the last 24 hours and 3% in a week. The 24-hour low and high are 24-high of $64,597 and $67,252. However, trading volume has increased by more 100% in the last 24 hours, indicating rise in interest among traders.

Experts claim that election year and current geopolitical conditions make both Bitcoin and gold desirable for investors. Charlie Morris, chief investment officer and founder of ByteTree, and Alexander Chartres, a fund manager at Ruffer, said the investors need to buy Bitcoin to diversify.