On December 11, 2:15 am UTC, the price of Bitcoin briefly dipped below the $41,000 mark, experiencing a sudden 6.5% drop from $43,357 to as low as $40,659 within a mere 20 minutes.
However, as of the latest TradingView data, Bitcoin has made a slight recovery, trading at around $41,960 after hitting the local low.
Ether, the second-largest cryptocurrency by market capitalization, also faced a sharp decline during the same timeframe, plummeting by more than 8.9%.
Presently, the price of ETH has stabilized at $2,233, reflecting a 5.3% decrease on the day. Other prominent cryptocurrencies like BNB, XRP, and Solana have also witnessed losses in value.
According to data sourced from CoinGlass, this abrupt drop led to the liquidation of long positions worth more than $270 million.
Additionally, it wiped out approximately $1.2 billion in open interest related to BTC, which currently stands at about $17.9 billion.
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Interestingly, this price decline occurred just moments after Scott Melker of Wolf of All Street had remarked on Bitcoin closing its eighth consecutive green weekly candle, playfully asking, “When correction, sir?”
This recent drawdown constitutes the most significant single-day decline for Bitcoin in over a month, despite the asset’s impressive growth of more than 12% over the past 30 days.
Notably, Bitcoin has seen a remarkable rally of over 150% since the beginning of the year.
This uptrend has been primarily fueled by the anticipation that the United States Securities and Exchange Commission (SEC) will greenlight several spot Bitcoin exchange-traded funds (ETFs).
This approval would provide large institutions with a substantial avenue for exposure to the cryptocurrency for the first time.
Another contributing factor to Bitcoin’s rally is the prevailing market expectation that the U.S. Federal Reserve will commence interest rate cuts around the middle of 2024.
Investors are also gearing up for the release of the next round of inflation data and the final Federal Open Market Committee (FOMC) meeting of 2023.
Analysts largely anticipate improvements in core inflation and are betting on the Fed maintaining the current interest rate levels.
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