Bitcoin Plunges, Erasing Recent Gains
Bitcoin’s bull run came to an abrupt halt as the cryptocurrency plummeted to under $42,000 in just minutes on Wednesday morning. According to CoinGecko, Bitcoin’s price dropped by 7.3% in the past 24 hours and is currently trading at around $42,200. During the crash, the price hit a low of $41,804, wiping out the gains made in the previous week.
Over $550 Million in Long Positions Liquidated
In the last day alone, over $550 million worth of crypto long positions were liquidated, with $104 million of Bitcoin longs liquidated in just one hour. CoinGlass provided this data, revealing the significant impact of the market downturn.
Other Cryptocurrencies Follow Suit
The plunge in Bitcoin’s price also affected other top cryptocurrencies. Ethereum slumped by 8.8% to nearly $2,200, Solana crashed by over 15% to under $100, XRP fell by over 10%, and Cardano and Avalanche both experienced drops of 14% and 15%, respectively.
SEC Decision on Bitcoin ETF Applications Looms
The cryptocurrency market is currently awaiting the Securities and Exchange Commission’s (SEC) decision on multiple spot Bitcoin ETF applications. Analysts speculate that this decision could trigger a “sell-the-news” event. Matrixport analyst Markus Thielen predicts that all spot Bitcoin ETF applications will be rejected by the SEC in January.
Hot Take: Market Volatility Continues to Test Crypto Investors
The sudden crash in Bitcoin’s price highlights the ongoing volatility of the crypto market. Investors must be prepared for significant fluctuations and potential losses. As regulatory decisions and market sentiment continue to influence the prices of cryptocurrencies, it is crucial to stay informed and make informed investment decisions.
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