Bitcoin just had one of its biggest declines. At noon UTC, the asset started what many considered another normal drop. However, the bulls failed to absorb the supply hike. As a result, it dropped to a low of $65k.
Many analysts suggest that the reason for the drop is the rising inflation. A clear evidence of this is the S&P decline. The SPX trading pair dropped by almost 2% in the last eight hours. It dropped from $5,171 to a low of $5,107. The Relative Strength Index further shows the bear’s dominance as it sank below 50 and is at 44.
Several financial institutions in the U.S. like JPMorgan and Wells Fargo, reported a 4% drop in quarterly net interest income. This meant that bank earnings and customers’ settlements decreased. Following the report, the latter bank’s stocks dropped by more than 5%. Other financial institutions also lost a considerable amount of their stock value.
Bitcoin and Altcoin Bleeds
The announcement also had a rippling effect on the crypto market. The global cryptocurrency market dropped by over 7% as almost all the assets in the top 100s flipped bearish. Some of the biggest losers were memecoins. One such is dogwifhat. It lost over 22% as it is currently struggling at $2.71. PEPE also lost 20%.
With several assets in the spot market bleeding heavily, the market correction is having an even more devastating effect on derivatives. Over the last 24 hours, traders lost a total of $877 million. Per Coinglass, 97% of the total liquidation took place within the last 12 hours which covers the time JPMorgan made its announcement.
Over $770 million worth of long positions were REKT within the highlighted time. This means that the bulls made up almost 90% of the REKT capital.
Bitcoin also saw the most liquidation as it accounted for $167 million. On the spot market, RSI plunged below 47, further illustrating the advantage the bears have. The Moving Average Convergence Divergence also reversed its previous bullish convergence. With the 12-day EMA continuing downwards.
