Bitcoin price plummets and crypto market turbulence escalates 

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22nd June 2024 – (New York) The total market capitalization of cryptocurrencies fell by 3.9% between 20th and 21st June, reaching a near five-week low of $2.34 trillion. This decline was felt across the board, with each of the top ten cryptocurrencies experiencing losses. Bitcoin led the drop with a 4.2% decrease to $64,110, closely followed by Ether and BNB, which fell by 4% and 4.2% respectively.

Market analysts have partially attributed this dip to a large Bitcoin sale by the German government, which offloaded 6,500 BTC, amounting to $425 million. This transaction, linked to assets seized from the defunct Movie2k piracy site, occurred across major exchanges including Kraken, Bitstamp, and Coinbase. Despite this, the sell-off was somewhat offset by a substantial purchase from MicroStrategy, which acquired an additional 11,931 BTC for $786 million on June 20.

However, broader market dynamics also played a critical role in the downturn. The cryptocurrency market’s recent performance seems to reflect growing concerns over the global economic outlook, with particular attention to weakening conditions in the United States. Traders are increasingly wary of potential peaks in the stock market and a deteriorating fiscal situation in the U.S.

Adding to the complexities is the upcoming ‘triple witching’ in the U.S. stock market—an event that sees the simultaneous expiration of stock, index options, and futures contracts. This quarter’s expiry involves a staggering $5.5 trillion, heightening fears among investors about the potential for increased market volatility and the looming risk of recession, as suggested by weaker macroeconomic indicators from major economies including the U.S., Germany, France, and Japan.