Bitcoin and Other Cryptos Drop Suddenly; What's Happening in the Crypto Market?
2023/12/26
The crypto market suddenly witnessed a broad sell-off during Asian hours on Tuesday, causing the global crypto market value to drop another 1% to $1.65 trillion.
Bitcoin price fell 2% within hours, dropping from $43,400 to $42,500. It also fell to almost 3% in 24 hours. Top altcoins ETH, SOL, BNB, XRP and others also dropped 2-4% within hours.
Contents
Here's the Reason for the Sudden Drop
Decline in BTC, ETH and Other Crypto Prices
Here's the Reason for the Sudden Drop
Investors were actually expecting a Christmas rally. However, high funding rates cause panic among investors. The market needs to cool down for the rise to continue. Meanwhile, stock data platform Coinglass reports, “Funding Rates are going crazy. “We expect big fluctuations.” He made a statement as follows..
This caused investors to move away from their long positions, causing a broader selloff in the crypto market. It is seen that long positions worth $ 40 million were liquidated in the crypto market in just one hour. Total liquidation in the last 24 hours is at $170 million. These include long positions of more than $90 million and short positions of more than $79 million.
While 1000SATS was liquidated the most in the last 24 hours, ETH led the liquidation in the last 1 hour.
Meanwhile, Mt. Gox creditors have reportedly started receiving Bitcoin payments. As miners monitor the event closely, it will cause some to sell their Bitcoin profits.
Decline in BTC, ETH and Other Crypto Prices
With high funding rates, investors may consider modifying their positions considering various factors such as expected spot Bitcoin ETF approval, Bitcoin halving, and technical charts.
