Technology
Monday, December 11th, 2023 3:01 pm EDT
Key Points
- Bitcoin’s Price Decline: Bitcoin experienced a 3.6% decrease, reaching $42,151.38 on Monday, following a significant drop the night before that briefly took it to around $40,300. This decline comes after Bitcoin surpassed $44,000 last week, trading just below that level over the weekend. Ether fell 4% to $2,238.38, while Solana’s SOL token and Ripple’s XRP each lost about 5%.
- Worst Days Since August and March: According to Coin Metrics, both Bitcoin and Ether are on pace for their worst days since August 18 and March 9, respectively. The recent market movements follow a 12% advance for Bitcoin in December, driven by expectations that the Securities and Exchange Commission (SEC) might approve the first spot Bitcoin exchange-traded fund (ETF) in early January.
- Positive Catalysts and Market Sentiment: Analysts note that Bitcoin has been on a steady climb in recent weeks, displaying a fervor not seen since early 2021. The sudden pullback led to a spike in liquidations, with Bitcoin witnessing $93.44 million in long liquidations over the past 12 hours and Ether seeing $65.42 million. Despite the decline, analysts, including Rob Ginsberg of Wolfe Research, believe there is still momentum in Bitcoin’s current uptrend. Potential positive catalysts for Bitcoin in the coming year include the anticipated approval of a Bitcoin spot ETF. Some market participants are optimistic about a price increase following the Bitcoin halving expected in spring 2024. Additionally, investors are closely watching the Federal Reserve’s moves during its final policy meeting of the year for clues about the possibility of rate cuts in 2024.
Bitcoin experienced a decline of approximately 3.6%, falling to $42,151.38 on Monday, following a significant drop on Sunday night that briefly took it to around $40,300. This retracement comes after Bitcoin reached over $44,000 last week and traded just below that level over the weekend. Ether also saw a 4% decrease, reaching $2,238.38, while Solana’s SOL token and Ripple’s XRP each lost about 5%. According to Coin Metrics, both Bitcoin and Ether are on track for their worst days since August 18 and March 9, respectively.
This pullback follows a 12% advance for Bitcoin in December, fueled by expectations of the Securities and Exchange Commission (SEC) potentially approving the first spot Bitcoin exchange-traded fund (ETF) in early January. Galaxy Digital estimates the addressable market size for a U.S. Bitcoin ETF to be around $14 trillion in the first year after launch, increasing to approximately $26 trillion in the second year.
Wolfe Research’s Rob Ginsberg notes that Bitcoin has been trading with a fervor not seen since early 2021, with a 56% increase in prices during October and November. Despite the recent decline, Ginsberg believes there is still considerable momentum in Bitcoin’s current upward trend. Chart analysts suggest that the cryptocurrency would need to fall further for them to reconsider the strength of the rally.
The pullback triggered a rise in liquidations, with $93.44 million in long liquidations for Bitcoin and $65.42 million for Ether over the past 12 hours, according to CoinGlass. Investors are closely watching for potential positive catalysts next year, including the anticipated approval of a Bitcoin spot ETF. Some in the market are optimistic about a price increase following the Bitcoin halving expected in spring 2024. Additionally, market participants are monitoring the Federal Reserve’s moves, particularly during its final policy meeting of the year, to gather clues about the possibility of rate cuts in 2024.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/12/11/bitcoin-shows-wild-side-again-dropping-3000-in-minutes-over-weekend.html
