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By Stephen Graves | Published on Jan 3, 2024
Bitcoin’s Bull Run Hits a Roadblock
Bitcoin’s surging bull run came to an abrupt stop as the cryptocurrency experienced a rapid decline, plummeting to below $42,000 within minutes on Wednesday morning.
Flash Crash Wipes Out Gains
According to CoinGecko data, Bitcoin’s price recorded a significant drop of 7.3% in the last 24 hours, settling at approximately $42,200. The crash saw Bitcoin’s value dip to as low as $41,804, wiping out gains accumulated over the past week.
Massive Liquidations Mark the Decline
CoinGlass reported liquidations exceeding $550 million in crypto long positions over the past day, including a staggering $104 million in Bitcoin longs within the last hour alone.
Ripple Effect on Altcoins
The impact of Bitcoin’s decline extended to other top 10 cryptocurrencies. Ethereum experienced an 8.8% drop to just under $2,200, while Solana plummeted by over 15%, falling below $100. XRP and Cardano both saw declines of over 10%, and Avalanche dropped by 15%.
- Bitcoin (BTC) -0.38% $42,737.86
SEC Decision Looms
The sudden market downturn coincides with the anticipation of the SEC’s imminent decision regarding the approval of multiple spot Bitcoin ETF applications. Analysts speculate that the outcome might trigger a “sell-the-news” event.
Differing Analyst Opinions
In contrast to some optimistic forecasts from Bloomberg Intelligence and JP Morgan analysts, Matrixport analyst Markus Thielen holds a contrary view. Thielen suggests in a recent research note that the SEC is likely to reject all spot Bitcoin ETF applications in January.
In conclusion, Bitcoin’s recent flash crash has not only impacted its own value but has sent shockwaves across the broader cryptocurrency market. As investors await the SEC decision, market volatility remains a key concern, prompting analysts to reassess their earlier predictions. The crypto community braces itself for potential shifts in the market dynamics in the coming days.