- Bitcoin rebounded to around $61,500, but volatility widened as about $1 billion in futures positions were liquidated and traders contended with spot ETF outflows and options expiry.
- While altcoins including Ether and Solana moved lower, the rebound in AI semiconductor stocks helped limit losses in Bitcoin and other major tokens.
- AAVE rose about 15% in 24 hours after Standard Chartered outlined a $3,500 price target for the end of 2030 and a step-by-step path higher.
Forecast Trend Report by Period
The cryptocurrency market was rattled by a wave of liquidations. Bitcoin slid to its lowest level since early June, pulling down major altcoins including Ether and Solana. Losses were partly limited by a rebound in AI chip stocks and token-specific gains in parts of the decentralized finance market.
CoinDesk reported on June 25 that Bitcoin fell as low as $59,175 overnight before rebounding to around $61,500. The token has dropped about 10% from a high near $65,500 earlier this week.
The correction wiped out about $1 billion in crypto futures positions. In Bitcoin futures alone, about $430 million of bullish long positions were liquidated.
No single catalyst clearly drove the selloff. A hawkish Federal Reserve stance, six straight weeks of outflows from spot exchange-traded funds, thinner summer liquidity and quarter-end options expiry on June 30 all added pressure.
Altcoins also failed to escape Bitcoin’s decline. Ether, Solana and other major tokens weakened, while leveraged liquidations added to short-term volatility. Market maker Wintermute had previously identified $59,000 as a key level in determining whether a bear-market bottom was forming.
The rebound in AI chip stocks, however, helped narrow losses in digital assets. Micron Technology reported better-than-expected earnings, easing concerns about slowing demand for memory used in AI servers. News that SK Hynix is pushing for a U.S. stock-market listing also supported sentiment in semiconductor shares. With digital assets recently trading in tandem with AI-related stocks, the semiconductor rebound appears to have aided recoveries in Bitcoin and major altcoins.
Among individual tokens, Aave stood out. It climbed about 15% over 24 hours to trade near $80 after Standard Chartered set a $3,500 price target for the end of 2030.
Geoff Kendrick, Standard Chartered’s global head of digital-asset research, said Aave could regain a dominant position in decentralized lending. He projects total assets across the DeFi market could grow about 37-fold by 2030. Kendrick also outlined a path for Aave to rise to $180 by the end of this year, followed by $600, $1,200 and $2,200.
Still, uncertainty remains over whether the long-term target can be reached. The fallout from a $291 million hack at KelpDAO in April also affected Aave’s liquidity, with deposits falling to about $23 billion from $44 billion. Aave’s share of the DeFi lending market also fell to 38% from an average of 59%.
Markets are wary of further volatility through the end of the quarter. CoinGlass data show about $1.6 billion in leveraged long positions sit below $58,000 in Bitcoin. A break under that level could intensify liquidation pressure. Investors are also watching the personal consumption expenditures price index, the Fed’s preferred inflation gauge.
