The cryptocurrency market experienced a significant downturn during U.S. trading hours on Thursday, as broad-based selling pressure intensified across the digital asset space. Bitcoin (BTC) demonstrated relative resilience but still succumbed to the negative sentiment, falling below a key psychological level. According to the latest 24-hour data, the BTCUSDT pair registered a low of $107,837.71 before seeing a minor recovery. However, the real pain was felt in the altcoin market. Major assets like Ethereum (ETH), Solana (SOL), and XRP saw declines ranging from 5% to 7%, wiping out recent gains. Specifically, ETHUSDT traded down to a low of $2,498.03, while SOLUSDT hit a bottom of $146.58, reflecting a clear risk-off sentiment among traders. The total market capitalization retreated as selling volume picked up, particularly in derivative markets where liquidations likely exacerbated the price drops.

Macroeconomic Headwinds and Geopolitical Jitters

This crypto-specific selloff did not occur in a vacuum. It was largely precipitated by renewed macroeconomic and geopolitical fears. Risk assets across the board, including equities initially, stumbled after reports that President Trump was considering new tariff measures ahead of a looming July trade deadline. Compounding this anxiety were heightened tensions in the Middle East. President Trump commented on the possibility of Israeli military action against Iranian nuclear facilities, stating, "it looks like it’s something that could very well happen." Such statements inject significant uncertainty into global markets, often leading investors to flee speculative assets like cryptocurrencies in favor of safe havens. While U.S. stock indices managed to recover and close with modest gains, the crypto market, which operates 24/7, continued its slide, unable to shake off the bearish catalysts. This divergence highlights crypto's current sensitivity to global risk narratives, a crucial factor for traders to monitor.

Economic Data vs. Federal Reserve Stance

Despite the hawkish stance from the U.S. Federal Reserve, which has signaled a reluctance to cut interest rates, recent economic data presents a conflicting picture. On Thursday, the Producer Price Index (PPI) for May came in softer than anticipated, suggesting that inflationary pressures may be easing. Furthermore, initial jobless claims unexpectedly remained high at 248,000, matching the previous week's multi-month peak. Continuing claims also rose to their highest level since November 2021, painting a picture of a cooling labor market. This weakening economic data could eventually force the Federal Reserve to adopt a more dovish policy, which would historically be bullish for assets like Bitcoin. President Trump continued his public pressure on Fed Chair Jerome Powell, underscoring the political dimension of monetary policy. For traders, this creates a complex environment where short-term bearish sentiment from geopolitical risks clashes with a potential long-term bullish setup based on macroeconomic trends.

USELESS: The Rise of a Nihilistic Memecoin Cult

In a fascinating counter-narrative to the serious macroeconomic discussions, the memecoin sector has produced its latest viral sensation: a token literally named USELESS. Embracing the ultimate crypto critique—that it's all useless—the token has cultivated a cult-like following, pushing its market capitalization toward the $100 million mark. The project’s ethos is one of pure, unadulterated speculation, devoid of the utility-driven promises that characterize most crypto projects. As crypto investor Unipcs, a major backer of the token, stated in a public chat, "Every memecoin is technically useless... yet here we are, with one actually called USELESS leading the pack." This meta-commentary on the nature of memecoins has resonated deeply within the degen community. Unipcs famously turned a small sum into over $20 million on BONK futures and has invested $382,000 into USELESS, a position that swelled to over $2.3 million at its peak, and he has yet to sell. This strategy highlights a trading thesis based on narrative strength and social consensus, where the value is derived purely from collective belief and the absurdity of the concept itself, creating a powerful flywheel effect.