The sharp downturn in the cryptocurrency market on December 9, 2024, was driven by a convergence of significant events, including:
🩸 Bhutan’s Bitcoin Sell-Off:
The Royal Government of Bhutan sold 406 Bitcoins worth $40 million, adding selling pressure just as Bitcoin ($BTC) attempted to break new all-time highs.
🛑 Excessive Leverage and Liquidations:
Over $1.7 billion in leveraged positions were liquidated within 24 hours. Bitcoin dropped below $94,000, while Ethereum ($ETH) fell 8%. This cascade of liquidations created a domino effect, amplifying the sell-off.
🧮 Quantum Computing Concerns:
Google’s announcement of its advanced "Willow" quantum chip sparked fears over potential vulnerabilities in cryptographic security. Although the immediate impact was speculative, it fueled market uncertainty.
💰 Government Bitcoin Sales:
Bhutan’s sale of a significant Bitcoin stash to exchanges heightened concerns about increased supply and further price pressure, echoing previous market downturns triggered by similar actions.
🚀 Market Trends and Halving Cycles:
Broader market corrections tied to pre-halving cycles also contributed. Historically, Bitcoin undergoes retracements and re-accumulation phases before halving events, aligning with this decline.
These combined factors created a "perfect storm," leading to a sharp decline across the market.
