Bitcoin Wipes Nearly Week’s Gains in 20 Minutes, Falls Below $41K
Following a sudden 6.5% drop from $43,357 to $40,659 in 20 minutes, Bitcoin (BTC) price briefly fell below $41,000 at 2:15 am UTC on December 11th.
At the time of publication, Bitcoin was trading at an area low of $41,960, according to TradingView data.
Ether (ETH), the second-largest cryptocurrency by market capitalization, also saw a sudden decline, falling more than 8.9% over the same period. The price of ETH has stabilized since then and is trading at $2,233, down 5.3% on the day.
Other big crypto assets posted losses, including Binance Coin (BNB), Ripple (XRP), and Solana (SOL).
According to data from CoinGlass, the short cut resulted in the loss of more than $270 million worth of long positions. The decline saw open interest on BTC lose some $1.2 billion, and currently sits around $17.9 billion.
The drawdown, ironically, came minutes after AllStreet's Scott Melker revealed that Bitcoin had just closed its 8th green weekly candle, saying, “When is it going to correct, sir?” He added his comment.
#Bitcoin has now closed its 8th green weekly candle in a row.
This week's candle was a monster.
When it's fixed, sir? pic.twitter.com/xxWjTxxLLr
— The Wolf Of All Streets (@scottmelker) December 11, 2023
The decline marks Bitcoin's biggest one-day decline in a month, with the asset up more than 12% over the past 30 days.
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However, since January 1 this year, Bitcoin has increased by more than 150%. The development was mainly driven by the United States SEC approving several Bitcoin exchange-traded funds (ETFs), which allow large institutions to gain greater exposure to the asset for the first time.
Adding to Bitcoin's rally is broad market speculation that the US Federal Reserve will begin cutting interest rates in the middle of next year.
Investors are preparing for the next round of inflation data as well as the final FOMC meeting this year, where most analysts expect improvements in core inflation and argue that the Federal Reserve will keep rates at their current levels.
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