April 12, 2024

Factors Behind Today’s Cryptocurrency Market Downturn

  • The cryptocurrency market has seen a downturn, with Bitcoin (BTC) falling 4.8% to about $43,000 and Solana (SOL) declining 7.8%, now just above $100. The global market cap has also dropped by 4.8% to $1.73 trillion, with a $100 billion loss in 24 hours.
  • Recent market volatility resulted in $700 million in liquidations, with 85% being long positions. This liquidation event follows an observation by CrediBULL Crypto that funding levels had normalized prior to the drop.
  • Possible triggers for the market correction include rumors of the US SEC potentially rejecting a spot Bitcoin ETF, which led to a 10% drop in BTC’s price post speculations by Matrixport. Additionally, cryptocurrency analyst Ali Charts noted that BTC miners sold approximately 4000 BTC worth over $176 million in the past ten days, contributing to the downturn.

Today, the cryptocurrency market is riding a tumultuous wave as major coins like Bitcoin and Solana take a plunge. The impact is significant, with the market shedding billions in mere hours. Let’s dive into what’s causing this digital storm in the crypto world.

Market Correction Leads to a Massive Drop

  • Bitcoin tumbles 4.8%, now trading around $43k.
  • Solana sees a 7.8% decrease, with its price just above $100.
  • The overall cryptocurrency market cap falls by 4.8% to $1.73 trillion.
  • Around $100 billion vanishes from the market in a single day.
  • CrediBULL Crypto comments on the funding levels prior to the drop.

As the market reels, traders are left to assess the damage and look for the root causes of this unexpected downturn.

Liquidations Sweep the Market

  • $700 million liquidated in the past 24 hours, as per CoinGlass reports.
  • 85% of the liquidations were long positions, indicating a bullish sentiment prior to the drop.

Liquidations have played a pivotal role in the market’s descent, catching many traders off guard.

Why did the Cryptocurrency Market Plummet?

  • SEC’s potential rejection of a spot Bitcoin ETF rattles investors.
  • Lookonchain cites a 10% BTC price fall post Matrixport’s statement on the SEC.
  • Despite concerns, some remain optimistic about eventual SEC approval for a spot BTC ETF.
  • Heavy sell-off by BTC miners contributes to the decline, with around 4000 BTC sold in ten days.

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Understanding these factors is key for investors trying to navigate the choppy waters of today’s cryptocurrency market. With potential regulatory changes and miner sell-offs at play, the market’s future remains a hot topic for debate.

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