The cryptocurrency markets experienced a significant downturn on Monday, with several altcoins dropping more than 10%. According to an industry analyst interviewed by Cointelegraph, the sudden decline had no clear catalyst behind it.
The total market capitalization of the crypto market has fallen to $2.46 trillion, representing a 3.5% decrease over the past 24 hours. Shiba Inu (SHIB) and Avalanche (AVAX) were among the hardest-hit altcoins in the top 20 by market cap on June 17, plummeting by 12.7% and 10.6% respectively. Other notable altcoins such as Uniswap (UNI), Dogecoin (DOGE), and Solana (SOL) also saw double-digit losses. Ripple’s XRP was the only non-stablecoin that managed to stay in the green, with a minor 0.1% increase.
The two largest cryptocurrencies, Bitcoin (BTC) and Ether (ETH), also experienced declines of 1.3% and 4.4% over the last 24 hours. The market volatility is evident in the price changes of the top 15 coins by market cap over different time frames.
Henrik Anderrson, the chief investment officer at Apollo Crypto, speculated that reduced interest in spot Bitcoin exchange-traded funds (ETFs) might have played a role in the market downturn. He mentioned that the negative BTC ETF flows could have led to weakness in altcoins and triggered liquidations of leverage long traders in Bitcoin, Ethereum, and Dogecoin.
On the other hand, Bitcoin mining stocks have been performing well despite the cryptocurrency’s price slump. Mitchell Askew, head analyst at Blockware Solutions, explained that mining stocks had underperformed before April’s halving event due to concerns about post-halving profitability. However, the situation has since improved, with mining stocks returning to equilibrium and showing positive growth.
Overall, the recent market volatility and altcoin crash have left experts divided on the causes and implications. While some tie it to the fall in spot Bitcoin ETF flows, others believe the relationship is more complex. Despite the uncertainties, market confidence seems to be returning to the mining sector, as evidenced by the performance of mining stocks in recent weeks.