After hitting $43,000 last week, Bitcoin traded just below it over the weekend. But the price of the cryptocurrency dropped significantly on Tuesday, reaching $41,800. Following Bitcoin’s December surge, investors chose to take profits, which led to this fall. There was a significant decline the night before, with Bitcoin momentarily falling as low as $40,300.
Due to the decline, the top cryptocurrency in the world had almost a week’s worth of gains erased in only 20 minutes on Sunday night. According to statistics from TradingView, Bitcoin saw a dramatic 7% decline at approximately 9:00 p.m. Eastern Time, falling from above $43,200 to as low as $40,290.
Bitcoin Liquidations And Stock Fluctuations
Following months of stagnation in a limited trading range, Bitcoin has been steadily rising in recent weeks. The cryptocurrency has seen a notable change in mood and performance after previously experiencing market disinterest.
Coinglass data indicates a flurry of positions liquidated in the 12 hours starting on Sunday evening, with upwards of $335 million in liquidations across cryptocurrencies, and roughly $300 million of that in long positions. The reason for the abrupt swing down was not immediately evident. In just Bitcoin alone, liquidations totaled over $89 million.
Source: TradingView
Stocks have fluctuated this week as investors prepare for a busy event schedule. Expectedly high volatility this week—the Federal Reserve’s most recent monetary policy decision is due on Wednesday, and important November inflation data is coming on Tuesday—is the cause of this anxiety.
Related Reading: Hold Your Horses: Bitcoin Could Fall Back To Under $38,000, These Analysts Say
When assessing the present rise in bitcoin, chart analysts all agree that a more significant dip in the cryptocurrency would be necessary before they would reevaluate how strong the rally is.
The sharp decline forced the liquidation of long Bitcoin positions worth over $270 million. Source: CoinGlass.
Rob Ginsberg from Wolfe Research agrees, pointing out that there is a lot of momentum in the continuing rising trend. According to the consensus of industry professionals, there is a general belief in the durability and longevity of Bitcoin’s upward trajectory.
Still A Bright Road Ahead
A number of favorable catalysts for the cryptocurrency is seen in the upcoming year, with the first being the possibility of a bitcoin exchange-traded fund (ETF). Investors…
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