Why Are Bitcoin, ETH, SOL, XRP, ZEC, NEAR Falling Today?

Bitcoin and ETH panic selling triggers broader crypto market selloffs.
XRP, SOL, Zcash, NEAR, and other altcoins fall amid massive liquidations.
Huge $1.3 billion Blackrock Bitcoin ETF sale, HTX sanctions, and profit-taking erodes sentiment.
Analyst signals further crash due to bearish engulfing outside bar pattern on Bitcoin chart.
Crypto market investors now await US PCE inflation data tomorrow.

Crypto market selloffs deepen on Wednesday, with the global market cap tumbling almost 1.5% to $2.53 trillion. Bitcoin falls 3% to $75K lows today, alongside similar moves in ETH, XRP, SOL, Zcash, NEAR, and others.

This appears to be a continuation of recent correction pressure rather than a full-blown crash, driven by a mix of macro risk-off sentiment, spot Bitcoin and Ethereum ETF outflows, HTX sanctions-driven crypto market liquidations, and technical weakness.

Moreover, the Crypto Market Fear & Greed Index recorded a sharp drop in the sentiment from 34 (fear) to 25 (extreme fear) today. Meanwhile, experts warn of a potential crypto market crash ahead.

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Crypto Market Selloffs Follow Huge BlackRock Bitcoin ETF Sell Trade

The crypto market saw broader selloffs after an institution sold shares of BlackRock Bitcoin ETF (IBIT) worth $1.3 billion in a dark pool block trade. Bloomberg senior ETF analyst Eric Balchunas said the market absorbed it well as the price remained unchanged today.

This comes amid consecutive outflows from spot Bitcoin ETFs. BlackRock’s IBIT saw $192.4 million in outflow on Tuesday, according to Farside Investors data. The total net outflow from spot Bitcoin ETFs increased to $333.6 million.

Bitcoin ETFs Outflow. Source: Farside Investors

Meanwhile, spot Ethereum ETFs also saw $35.1 million in outflows, with Fidelity’s FETH suffering $17 million in redemptions. BlackRock’s ETHA recorded $1.9 million in outflows.

As CoinGape reported earlier, institutions are rotating out from Bitcoin and ETH into altcoin-focused funds such as XRP, NEAR Protocol, and SOL exchange-traded funds. Crypto funds globally saw outflows of $1.47 billion, a second consecutive negative week.

Macro Risks Remain Despite Easing US-Iran War Escalation Fears

The US 10-year Treasury yields (US10Y) declined to around 4.47% on Wednesday, reaching a two-week low as investors further reduced Fed rate hike expectations amid signs of progress toward a US-Iran peace agreement.

The US dollar index (DXY) stabilizes near 99 after a volatile week as President Trump said talks on extending the ceasefire and reopening the Strait of Hormuz are ongoing. Meanwhile, US Secretary of State Marco Rubio cautioned that any final deal could still require several more days to finalize.

However, renewed Middle East tensions continued to bleak the outlook, with the US military carried out self-defense strikes in southern Iran. Iran’s Revolutionary Guard threatens to retaliate following US strikes on Iranian missile launch sites and military boats.

Investors are now awaiting upcoming PCE inflation data on Thursday for additional clues into the Federal Reserve’s future policy direction. Economists’ forecasts show the PCE inflation data coming in hot at 3.8%, up from 3.5% ypreviously.

Bitcoin, ETH, XRP, SOL, Zcash, NEAR Lead Crypto Market Selloffs

The crypto market selloffs deepen in light of recent UK sanctions of HTX, transfers or transactions between platforms and HTX are impacted. Crypto platforms such as OKX and BIT said transactions between addresses and HTX may be subject to enhanced compliance reviews, additional verification, restrictions, or other risk-control measures.

Notably, the crypto market recorded more than $350 million in liquidations in top crypto assets in the last 24 hours. Nearly $250 million in long positions and $100 million in short positions were liquidated, with massive liquidation over the last few hours.

This is turning into a larger crypto market liquidations event amid no signs of buy-the-dip sentiment. Almost 95K traders were liquidated, with the largest single liquidation order of WLFI-USDT worth $12.06 million on crypto exchange Binance.

As per data, Bitcoin, ETH, XRP, SOL, Zcash, WLFI, NEAR and HYPE recorded the largest liquidations, resulting in broader crypto market selloffs.

Analysts Warn of Further Bitcoin and Crypto Market Selloffs

Bitcoin price fell 3% in the past 24 hours, with the price currently trading at $75,345. The 24-hour low and high are $75,204 and $77,990, respectively. Furthermore, trading volume has increased by 66% amid crypto market selloffs.

Bitcoin Bearish Engulfing Pattern. Source: Cheds Trading

Popular analyst Ched Trading pointed out that Bitcoin has formed a bearish engulfing outside bar pattern on daily chart. He said this represents “following advance as mean reversion of falling channel.”

It signals a reversal in Bitcoin as bears completely overpowered bulls. BTC price could drop to $73K if it breaks below the 50-day moving average at $74,294.

Meanwhile, analyst Ali Martinez claimed that net capital flows into the crypto market are currently witnessing a brief cooling phase. Also, the monthly positioning is shifting by nearly $2 billion, he added.

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Crypto Market Selloffs: Why Are Bitcoin, ETH, SOL, XRP, ZEC, NEAR Falling Today? originally appeared on CoinGape

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