On Friday (December 27), Bitcoin plunged and almost fell below $95,000, recording a single-day drop of more than $2,000. The reason for the collapse was that the Trading View Bitcoin dominance market "misreported" to 0%. Strive, which is related to US President-elect Donald Trump, applied for a Bitcoin bond ETF, aiming to invest in convertible bonds of Wall Street listed giant MicroStrategy, etc.
Crypto community users reported an anomaly on the Trading View Bitcoin dominance chart, with Bitcoin falling to $95,000. The error showed that Bitcoin's share of the entire cryptocurrency market capitalization had fallen to 0%. The error was allegedly behind the knee-jerk trading reaction and has now been corrected.
Data from monitoring resource CoinGlass shows that approximately $33 million worth of Bitcoin longs have been liquidated.
According to Forbes, AltAlpha Digital co-founder Marc P. Bernegger said: “The latest volatility in Bitcoin’s price, which fell from nearly $100,000 to around $95,000, appears to have been affected by a Trading View glitch.”
“The bug incorrectly displayed Bitcoin dominance as 0%, causing traders to panic and subsequent market volatility. This led to massive liquidations, with approximately $33 million in Bitcoin longs being liquidated in a few hours,” he added.
He said: “There was also an untimely glitch on Trading View that caused the Bitcoin dominance indicator to drop to 0%, which may have triggered additional outflows. Therefore, panic selling caused by low liquidity environment due to a technical error, combined with strategic profit-taking after a relatively positive year and a major institutional move of $338 million in Bitcoin ETF outflows on Christmas Eve, are the most likely catalysts for the Bitcoin price pullback in the past 24 hours.”
Despite the end of the light Christmas trading, traders remain cautious ahead of Trump's inauguration on January 20, 2025. CoinTelegraph reported that Strive, an asset management company founded by billionaire Vivek Ramaswamy, has applied to US regulators to list an exchange-traded fund (ETF) that will invest in Bitcoin convertible bonds issued by MicroStrategy and other companies.
Vivek is the leader of Trump’s newly established Department of Government Efficiency (DOGE). According to the documents, the Bitcoin Bond ETF applied for by Strive seeks to provide investment opportunities in “Bitcoin bonds.”
Strive said the Strive Bitcoin Bond ETF will be actively managed and will invest in “Bitcoin bonds” either directly or through financial derivatives such as swaps and options.
Strive hasn’t specified the management fees it charges investors, but actively managed funds typically charge higher fees than passive index funds.
MicroStrategy has spent about $27 billion buying Bitcoin since the start of 2020 as part of a corporate financial strategy led by co-founder Michael Saylor. Its stock, MSTR, has risen more than 2,200% year to date, outperforming almost every major public company except NVIDIA.
MicroStrategy financed these acquisitions by issuing new shares and convertible bonds, which pay little or no interest but can be converted into MSTR shares under certain conditions, and other companies have followed suit. Corporate treasuries currently hold about $56 billion worth of Bitcoin, according to BitcoinTreasuries.net.
Vivek, an outspoken ally of Trump, founded Strive in 2022. According to reports, the asset management company aims to help investors "harness the power of capitalism."
Trump has been proposing pro-crypto industry leaders for key regulatory agencies since winning the U.S. presidential election on Nov. 5. In December, Trump announced the appointment of former PayPal COO David Sacks as his “AI and cryptocurrency czar” and former commissioner Paul Atkins as chairman of the SEC.
Bitcoin Technical Analysis
Economies.com said that Bitcoin price had a bearish rebound after touching the resistance line of the modified bearish channel appearing on the chart and began to suppress the 23.6% Fibonacci correction level, which formed a key support level of $95,195.
The price needs to break above this level to confirm an up move to the negative target that starts at $91,000 and extends to the 38.2% Fibonacci correction level at $87,055.
Therefore, a bearish bias is suggested for the coming trades, considering that a breakout above $99,170 will halt the expected decline and result in the price making another attempt to resume the primary bullish trend.
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