The crypto market witnessed a sudden drop, with all crypto falling at the same time. Bitcoin (BTC) and Ethereum (ETH) fell more than 1% each, with major selloffs in DeFi tokens. Almost $140 million worth of crypto liquidated in the past 24 hours. Here are the reasons behind selloffs in the broader crypto market that left traders skeptical about a recovery.

Reasons Behind Crypto Market Selloff

The selloff started immediately after Binance announces a plan to shut down its buy-and-sell service Binance Connect just a year after the launch. The exchange wants to refocus on its main products and long-term goals. Despite the service supporting just 50 cryptocurrencies, a broader selloff was witnessed.

Coinglass data reveals longs liquidation of $129 million in a day. Almost 63k traders were liquidated in the last 24 hours, with the largest single liquidation order on Binance’s ETHUSDT pair worth $2.34 million. Dogecoin, Litecoin, XRP, Solana, and Shiba Inu are amongst the most liquidated crypto in the past 24 hours.

Traders and whales also took other reasons into consideration for selling which include the FOMC Minutes release, Elon Musk ending XPro (TweetDeck) as a free offering, and the probability of the Shibarium mainnet release today. The US stock market indices also fell more than 1% on Tuesday on banking concerns and the weakening Chinese economy.

FOMC Minutes will help provide clear guidance to traders regarding the plan of the US Federal Reserve for further rate hikes. However, a dovish approach can bring back momentum in the markets. The US dollar index (DXY) continues to move sideways near the 103.15 level, showing that macro didn’t have any severe impact on crypto prices.

Shibarium release can be a buy the rumor, sell the news event. SHIB price can continue falling amid a mostly neutral sentiment in the market. Whales that recently started buying, can sell their SHIB and BONE holdings.

Read More: Bitcoin Metrics Signal Extreme Apathy And Exhaustion, End Of Downtrend?

Market Selloff To Extend?

Popular analysts such as Rekt Capital and Michael van de Poppe predict a further fall in crypto prices. Also, a bull flag breakout for BTC dominance is bad news for altcoins.

BTC price trades at $29142, down 1% in the past 24 hours, while ETH price also fell 1% to $1823. Meanwhile, top altcoins such as XRP, DOGE, SOL, MATIC, and SHIB fell 5% amid negative sentiment before the FOMC Minutes release.

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.