Crypto Markets Bounce After Rough Monday

Over $500 million of leveraged positions were liquidated on Monday as Bitcoin briefly plunged below $60,000.

By: Mehab Qureshi Loading...

Bitcoin symbol with an upward-trending arrow

Crypto bulls caught a break on Tuesday morning after a challenging start to the week.

Bitcoin spiked 2.5% to trade above $61,000, while Ethereum rallied 3.5%. Meanwhile, Solana jumped 8%, and Polkadot climbed 5%.

SOL Price chart
SOL Price

Remarkably, all of the top 100 digital assets by market capitalization are in the green today, with memecoins BRETT, WIF, PEPE and BONK leading the pack.

The bounce comes after traders liquidated over $500 million in cryptocurrencies on Monday. CoinGlass data reports that Tuesday's largest single liquidation order, valued at $2.03 million, occurred on Bybit for BTC-USDT.

ETH ETF Could Be Imminent

Asset management firm VanEck has filed an 8-A form with the SEC for its spot Ether ETF as part of the approval process. Bloomberg analyst Eric Balchunas noted that the company “filed their 8-A for spot bitcoin exactly 7 days before launch.”

If history repeats, Ethereum ETFs could launch as soon as next week.

Michael van de Poppe, CEO of MN Trading, noted Bitcoin’s dominance continued to peak at 58%. “More attention will likely shift to Ethereum due to the upcoming ETF,” he said.

Mt. Gox Repayments

Meanwhile, creditors of Mt. Gox, the once-largest Bitcoin exchange that lost 850,000 Bitcoin in a massive 2014 exploit, will start receiving Bitcoin and Bitcoin Cash repayments in early July.

Samson Mow, CEO of Bitcoin adoption firm Jan3, believes that the current Bitcoin dip stems from fear rather than sales of large holdings. “Even when Gox coins hit the market, any potential sales will likely occur via OTC, minimizing their impact on price,” Mow tweeted.

U.S. stock markets rallied on Tuesday, with the S&P 500 up 0.4% as the Nasdaq soared 1.1%.

Federal Reserve Governor Michelle Bowman said today that it is not yet the appropriate time to lower interest rates.

“Incoming data indicating that inflation is moving toward our 2 percent goal will eventually justify gradually lowering the federal funds rate to prevent overly restrictive monetary policy,” she said. “However, we are not yet at the point where it is appropriate to lower the policy rate.”