Bitcoin Plunges: $41K Barrier Broken in 20-Minute Drop

On December 11, the price of Bitcoin experienced a sudden and sharp decline, dropping 6.5% to fall below the $41,000 mark. This abrupt downturn occurred at 2:15 am UTC, resulting in a swift drawdown from $43,357 to as low as $40,659 in just 20 minutes. The unexpected plunge wiped out the leading cryptocurrency’s approximately five days’ gains.

At the time of publication, The live Bitcoin price today is $41,985.24 USD, with a 24-hour trading volume of $23,531,369,636 USD.

Source Coinmarketcap

During this timeframe, ether, the second-largest cryptocurrency in terms of market cap, plunged, too. However, its value decreased by 8.9%, bringing ether prices to $2240, which later increased to $2233, representing a 5.3% daily fall.

The adverse market conditions extended beyond Bitcoin and Ether, impacting other major cryptocurrencies. Binance Coin (BNB) saw a decline to $233, Ripple XRP dropped to $0.63, and Solana (SOL) experienced losses, trading at $70.

CoinGlass data revealed the consequences of this sudden drop, with over $270 million worth of long positions being liquidated. Additionally, the decline led to a reduction of $1.2 billion in open interest on Bitcoin, which currently stands at approximately $17.9 billion.

The timing of this drawdown coincided with a remark from Scott Melker, known as the Wolf of All Street, who had noted just minutes earlier that Bitcoin had closed its eighth consecutive green weekly candle. In a touch of irony, he questioned, “When correction, sir?”

Bitcoin: 12% Surge, 6% Crash, SEC and Fed Factors

Bitcoin has increased by almost twelve percent in a month; however, it was down sixty percent in a single day, the worst for such a short period. However, Bitcoin has been performing outstandingly overall, raising more than 150 % in the first month of January alone.

This positive growth is driven partly by the hope that the US Securities and Exchange Commission (SEC) will approve the spot Bitcoin ETF. Further, the expectation of the U.S. Federal Reserve cutting off the interests for the next year also affected the market.

Investors are closely monitoring upcoming inflation data and the final Federal Open Market Committee (FOMC) meeting of the year, speculating on the Federal Reserve’s decision regarding interest rates.

Related Reading | Solana Whale Moves Spark Concerns Amidst 14% Surge

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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