🔍 Main Reasons for the Drop
1. Mass Liquidations
In the last 24 hours, over $750 million have been liquidated in futures positions, with $660 million in long positions. This especially affected BTC, ETH, SOL, XRP, DOGE, and SUI.
2. Options Expiration
Today marks the expiration of $11.6 billion in Bitcoin and Ethereum options on Deribit, increasing volatility and putting pressure on prices.
3. Geopolitical Tensions
Trade negotiations between the US and China are stalled, as confirmed by US Treasury Secretary Scott Bessent, which has reduced risk appetite in the market.
4. Negative Seasonality
Historically, June is a weak month for the crypto market, with average negative returns. This may be leading investors to anticipate sales.
5. ETF Outflows
After a run of positive inflows, Bitcoin ETFs recorded outflows, indicating a possible profit-taking by institutional investors.
Conclusion
Despite the sharp drop, this movement is a healthy correction after recent strong gains. The Fear & Greed Index fell from 74 to 60, indicating caution but not panic.
