Leading cryptocurrencies slipped Sunday as worries over high inflation and the U.S. government’s potential Bitcoin liquidation weighed on the market.

What Happened: Bitcoin fell below $63,000, reaching a low of $62,045 in the early hours before recovering in the evening.  

Ethereum wobbled in the $2,400 region as the bulls faced stern resistance in their attempt to breach $2,500.

Ethereum’s year-to-date gains have narrowed to 7.77%, thanks to a multi-month downtrend since hitting nearly $3,900 in late May.

Concerns have mounted after the Supreme Court declined to hear a case challenging the government’s ownership of the Bitcoin seized from the dark web marketplace Silk Road, clearing the door for liquidations of up to 69,370 BTC.

Total cryptocurrency liquidations exceeded $100 million in the last 24 hours, while Bitcoin’s Open Interest dropped 0.38%.

Bitcoin’s Long/Short Ratio declined further as traders placing bearish bets on the leading cryptocurrency surged vis-à-vis those gunning for price increases. 

The market sentiment remained in the “Neutral” zone, according to the Cryptocurrency Fear & Greed index. 

Top Gainers (24-Hours)

The global cryptocurrency stood at $2.19 trillion, following a contraction of 0.89% in the last 24 hours.

Stock futures traded just below the flatline Sunday overnight. The Dow Jones Industrial Average Futures was down 11 points, or 0.03%, as of 8:45 p.m. EDT.  Futures tied to the S&P 500 dipped 0.08%, while Nasdaq 100 Futures lost 0.16%.

Major indices like the Dow and the S&P 500 recovered Friday after Thursday’s decline precipitated by hotter-than-expected inflation data.

That said, the likelihood of a further 0.25% interest rate slash by the Federal Reserve next month was close to 90% as of this writing, according to the CME FedWatch tool.

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Analyst Notes: Cryptocurrency analyst Michaël van de Poppe anticipated another 1-2 days of Bitcoin consolidation, adding that a test of $64,000 would result in the big breakout everyone has been waiting for.

“The build-up is massive,” he remarked.

Another widely-followed technical analyst, CrypNuevo drew attention to an “important” liquidation cluster on the upside between $63,500 and $65,000.

“It’s possible to see a shakeout first, especially at the start of the week, but price should eventually head towards that area,” the analyst projected.

“This can increase the risk of big price swings, so it’s important to be cautious,” Martinez predicted.

Photo by SvetlanaParnikova on Shutterstock

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