On Friday (December 27), Bitcoin plummeted and nearly fell below $95,000, recording a decline of over $2,000 in a single day, with the collapse caused by a 'reporting error' on Trading View that brought Bitcoin's dominance down to 0%. Strive, related to President-elect Trump, has applied for a Bitcoin bond ETF aimed at investing in convertible bonds from Wall Street-listed giant MicroStrategy, among others.
Users in the cryptocurrency community reported anomalies in the Trading View Bitcoin dominance chart, causing Bitcoin to drop to $95,000. The error showed that Bitcoin's share of the total cryptocurrency market capitalization had fallen to 0%. It is said that this error was behind the instinctive trading response, which has now been corrected.
Data from monitoring resource CoinGlass shows that approximately $33 million in Bitcoin longs have been liquidated.
Forbes reported that Marc P. Bernegger, co-founder of AltAlpha Digital, stated: “The latest fluctuation in Bitcoin's price dropping from nearly $100,000 to around $95,000 seems to have been influenced by a Trading View malfunction.”
“This error erroneously displayed Bitcoin's dominance as 0%, causing panic among traders, which subsequently led to market turmoil. This resulted in a large number of liquidations, with approximately $33 million in Bitcoin longs being liquidated within hours,” he added.
He stated: “There was also an untimely malfunction on Trading View that caused Bitcoin's dominance indicator to drop to 0%, which may have triggered additional capital outflows. Therefore, the panic selling due to the low liquidity environment caused by technical errors, combined with relatively aggressive year-end strategic profit-taking, and significant institutional movements of $338 million in Bitcoin ETF outflows before Christmas, are the most likely catalysts for the drop in Bitcoin's price over the past 24 hours.”
Despite the lackluster trading over Christmas, 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 U.S. regulators to list an exchange-traded fund (ETF) that will invest in Bitcoin convertible bonds issued by MicroStrategy and other companies.
Vivek is the head of Trump's newly established Department of Government Efficiency (DOGE), according to documents indicating that the Bitcoin bond ETF applied for by Strive seeks to provide investment opportunities in 'Bitcoin bonds.'
Strive stated that the Strive Bitcoin Bond ETF will be actively managed and will invest directly or through derivatives such as swaps and options in 'Bitcoin bonds.'
Strive has not yet specified the management fees to be charged to investors, but actively managed funds typically charge more than passive index funds.
Since 2020, MicroStrategy has spent approximately $27 billion purchasing Bitcoin, part of a corporate finance strategy led by co-founder Michael Saylor. Its stock MSTR has risen over 2,200% so far, outperforming almost all large publicly listed companies except Nvidia.
MicroStrategy funds these acquisitions by issuing new shares and convertible bonds, whose interest rates are very low or even zero, but can be converted into MSTR stock under specific conditions, with other companies following suit. According to BitcoinTreasuries.net, corporate treasuries currently hold approximately $56 billion worth of Bitcoin.
Vivek is a vocal ally of Trump, who founded Strive in 2022. The asset management company aims to help investors 'harness the power of capitalism.'
Since winning the U.S. presidential election on November 5, Trump has proposed appointing leaders who support the crypto industry to major regulatory bodies. In December, Trump announced the appointment of former PayPal COO David Sacks as his 'Artificial Intelligence (AI) and Cryptocurrency Czar' and named former commissioner Paul Atkins as chairman of the U.S. Securities and Exchange Commission.
Bitcoin Technical Analysis
Bitcoin's price experienced a bearish bounce after hitting the resistance line of a corrective bearish channel shown on the chart, beginning to suppress the 23.6% Fibonacci retracement level, which forms a critical support level at $95,195.
The price needs to break through this level to confirm the rise to the negative target, which starts at $91,000 and extends to the 38.2% Fibonacci retracement level of $87,055.
Therefore, a bearish bias is recommended for the upcoming trades, considering that a breakout above $99,170 will prevent the expected decline and lead the price to attempt to recover the primary bullish trend again.
