On December 9, 2024, the cryptocurrency market experienced a significant drop, affecting assets such as Bitcoin and Ethereum. This correction can be attributed to several factors:
1. Correction after all-time highs: Bitcoin recently surpassed $100,000, a milestone that generated excitement in the market. However, analysts such as Michael Novogratz, CEO of Galaxy Digital, warned that after reaching this level, a 20% correction was likely, putting the price around $80,000.
2. Excessive leverage: Novogratz also noted that “the crypto community is leveraged up to its eyeballs,” which increases the market’s vulnerability to sharp corrections when prices reach new highs.
3. Geopolitical risks and technological expectations: Experts such as Santiago Carbó, professor of Economics at the University of Valencia, warned about geopolitical risks and possible technological disappointments that could affect the value of cryptocurrencies. These factors may have contributed to the recent fall.
