In the early hours of December 11th, Bitcoin's value rapidly decreased, dropping below the $41,000 mark, erasing nearly a week's worth of gains in a mere 20 minutes.
Bitcoin (BTC) experienced a dramatic 6.5% drop from its standing at $43,357, plummeting to a low of $40,659. Shortly after the dip, Bitcoin recovered and currently trades at around $42,000. However, the data shows that in the last 24 hours it is down 4%.
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Alongside Bitcoin, Ether (ETH), the second-largest cryptocurrency in terms of market capitalization, also faced a steep decline. Ether fell by over 8.9% within the same timeframe. After the drop, ETH's price stabilized somewhat, settling at $2,230, which is around a 5% decrease from its daily high.
This downturn wasn't isolated to Bitcoin and Ether; other prominent cryptocurrencies such as BNB (BNB), XRP, and Solana (SOL) also reported losses.
The market's swift movement resulted in substantial impacts, with CoinGlass data indicating that over $270 million in long positions were liquidated due to the drop. The decline erased about $1.2 billion in open interest on Bitcoin futures, leaving the current total around $17.9 billion.
Interestingly, the decline occurred just minutes after market analyst Scott Melker, also known as the Wolf of All Street, commented on Bitcoin's recent performance. Melker had pointed out Bitcoin's eighth consecutive green weekly candle.
Despite this setback, Bitcoin has grown significantly over the past month, increasing by more than 12%. The long-term numbers are even more impressive. Since the beginning of the year, Bitcoin has rallied impressively, showing over a 150% increase.
This growth trajectory is primarily attributed to anticipation around the US Securities and Exchange Commission's potential approval of several Bitcoin ETFs. Such a move would enable large institutions to acquire substantial Bitcoin exposure.
The sudden and sharp decline in Bitcoin's price serves as a reminder of the cryptocurrency market's volatility. While there has been notable growth and optimistic market expectations, events like these underscore the unpredictable nature of digital asset investments.
