Crypto Market Sell-off: BTC, ETH, XRP, SOL, ADA and other cryptocurrencies experienced a pullback as traders closed their positions due to major factors.
The crypto market saw a massive sell-off during the Asian session, with the global crypto market cap falling 5% to $1.57 trillion. Bitcoin prices plunged 7%, while top altcoins such as Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA) DOGE and SHIB saw a sharp sell-off within minutes. The Crypto Fear and Greed Index slipped from 82 (extreme greed) to 80.
Why did the cryptocurrency market suddenly drop?
As the market continues to rise, traders expect a correction in the cryptocurrency market. Willy Woo, a popular Bitcoin analyst, said that the BTC price doubled in just 2 months without a pullback, so the pullback is not surprising. Corrections and pullbacks are crucial to confirm further rallies, especially during "extreme greed" and major macro events.
CoinGape first warned that a pullback could occur this week. BTC price is expected to fall further as the Bitcoin CME gap of $39,700 needs to be filled before a potential rebound. CME and Binance liquidated nearly 5% and 8% of the open interest (OI) respectively.
In addition, CoinGlass data shows that today (December 12), the amount of large-scale liquidation exceeded $400 million. The market liquidated $354 in long positions in just one hour. In the past 24 hours, more than 119,000 traders were forced to close, and the largest single forced liquidation order of OKX BTC-USDT-SWAP was worth $8.23 million. Due to liquidation and selling, the cryptocurrency market is in a "red" state today.
The release of CME and PPI inflation data, as well as the Federal Reserve's year-end interest rate decision announced this week, further prompted investors to sell their holdings.
Bitcoin and Ethereum prices are set to pull back further during US time, with traders and whales considering re-entering the market near support levels.
“We failed to breakout above 40k as expected,” said popular cryptocurrency analyst Credible Crypto. He predicts that a full reset of OI will leave the bullish market structure intact and set the stage for a rally above $50,000. He believes that BTC price will reach $60,000 in the coming weeks. Meanwhile, he still has an ETH price target of $3,500.
BTC price is currently trading at $42,160, giving back some of the gains seen earlier in the past few hours. The 24-hour low and high were $40,521 and $44,034 respectively.
ETH price is trading at $2,243, down 5% in the past 24 hours. The 24-hour minimum and maximum prices were $2,171 and $2,376 respectively.
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【Disclaimer】The market is risky, so be cautious when investing. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions in this article are suitable for their specific circumstances. Investing based on this information is at your own risk.
