Bitcoin (BTC) faced a surprising downturn in U.S. trading on Friday, moving away from its recent high levels and barely managing a slight week-over-week gain. At the time of writing, bitcoin was trading at $69,000, showing a 2.5% drop over the past 24 hours. This performance was notably better than the broader CoinDesk 20 Index, which saw a 5% decline in the same period.
Within the CoinDesk 20 Index, other major cryptocurrencies also experienced declines. Ether (ETH) fell by 4%, Tezos (XTZ) and EOS (EOS) dropped by 10%, and Solana (SOL) decreased by 7%.
Data from Coinglass indicated that this selloff resulted in $450 million worth of liquidations, the largest since a significant market drop in mid-April. Earlier on Friday, bitcoin was close to reaching $72,000 but began to decline after the U.S. government’s May employment report showed an unexpected addition of 272,000 jobs. This strong job growth diminished hopes for an immediate interest rate cut by the Federal Reserve, causing interest rates and the dollar to rise sharply.
The decline in bitcoin and other cryptocurrencies accelerated several hours later when Roaring Kitty held his first YouTube livestream in years. Many viewers were anticipating a major announcement, but he offered little of note, mainly expressing his hope for GameStop’s future transformation. During the broadcast, GameStop (GME) shares, already down for the day, fell further and ended up 40% lower. The GME meme coin also saw a significant drop, losing 50% from its earlier highs. Other meme coins also suffered: Dogecoin (DOGE) dropped 8%, Shiba Inu (SHIB) fell 10%, and Pepecoin (PEPE) declined by 15%.
Meanwhile, bitcoin enthusiasts are left wondering what it will take for a significant price breakout. Despite the recent setbacks, there have been positive signs in the market. Spot ETFs recorded their 18th consecutive day of inflows on Thursday, a streak that surpasses the intense buying periods of February and March. During this 18-day period, ETFs accumulated more than 56,000 bitcoins, nearly seven times the amount mined during that time, according to HODL Capital.
Overall, while bitcoin and the broader cryptocurrency market faced setbacks this week, the continuous inflow into ETFs suggests underlying investor confidence. However, the immediate future remains uncertain as market participants look for clearer signals amid fluctuating economic data and market events.