Cryptocurrency markets experienced a collective decline on Thursday, June 5, 2025, led by Bitcoin, the largest currency by market capitalization.
🔍 Key reasons for the drop in cryptocurrency markets today:
1. Profit-taking sales by major investors
After notable increases in previous days, some major investors sold to realize profits, leading to selling pressure on the market.
2. Decline in ETF flows
Bitcoin ETFs saw a decline in flows, recording outflows of $87 million on June 4, a significant drop compared to the previous week, negatively impacting market sentiment.
3. Negative technical effects on Bitcoin
Technically, Bitcoin is facing selling pressure, as the Relative Strength Index (RSI) has dropped to levels indicating overselling, which could lead to further declines if current support levels are not maintained.
4. Decline in Bitcoin's dominance in the market
Bitcoin's market dominance has decreased to 63.3%, reflecting a general weakness in the performance of major digital assets.
5. Effects of trade tensions between the United States and China
The renewed tensions in trade negotiations between the United States and China have led to a state of economic uncertainty, prompting investors to reduce their exposure to high-risk assets such as cryptocurrencies.
6. Decline in investor sentiment towards alternative currencies
Alternative currencies (Altcoins) experienced a sharp decline due to on-chain selling pressure and a decrease in network activity, negatively affecting prices.
📉 A look at the performance of some major currencies:
Bitcoin (BTC): Dropped below $105,000, with a decline of 0.8%.
Ethereum (ETH): Fell by 1.3% to $2,607.
Shiba Inu (SHIB): Faced selling pressure due to whale exits and breaking technical support levels.
🔮 Future forecasts:
Despite the current decline, some analysts believe that these corrections may pave the way for an altcoin season, especially with the decline in Bitcoin dominance and increasing interest in Ethereum and ETF flows.
