Crypto Market Crash: Bitcoin Price Drops 9.4% as $550 Million Liquidated Following Sell-Off Surge

The post Crypto Market Crash: Bitcoin Price Drops 9.4% as $550 Million Liquidated Following Sell-Off Surge appeared first on Coinpedia Fintech News

As market prices struggle to surpass their resistance levels, a growing “sell the news” sentiment is emerging among investors. This shift in attitude has increased in recent hours, as major players have grown impatient due to the repeated failure of Bitcoin and Ethereum prices to break through.

This impatience brought a significant selloff. Meanwhile, the recent crash has sparked exciting discussions among analysts, especially anticipating the SEC’s upcoming decision on ETFs.

Nearly $550 Million Liquidated Following Crash

Bitcoin and other cryptocurrencies, including Ethereum, XRP, and Solana, have experienced a sudden downturn amid growing concerns that Wall Street’s significant push for a Bitcoin spot exchange-traded fund (ETF) might face rejection.

The price of Bitcoin has fallen by approximately 9.4%, with Ethereum, XRP, and Solana each experiencing declines ranging from 7% to 14%. According to data from Coinglass, the total crypto market liquidation in the last 4 hours touched nearly $550 million, with bulls liquidating over $512 million in long positions.

According to on-chain data, Bitcoin miners sold off $176 million worth of Bitcoin, triggering bearish market sentiments for Bitcoin near $45K. Additionally, the market plunge may be linked to Matrixport’s analysis as Bitcoin struggled around $45,000. The report states that the SEC, led by Chair Gensler’s cautious stance on crypto, may dismiss all Bitcoin spot ETFs in January.

A critical approval criterion is still unfulfilled despite ongoing discussions, potentially until Q2 2024. The report forecasts a potential 20% drop in Bitcoin prices to approximately $36,000-$38,000 if ETFs are rejected, spurred by liquidating assets tied to ETF approval expectations.

Nonetheless, the community has recently criticized Matrixport’s report for its lack of detailed information and supporting evidence.

Analysts See This As a Discounted Opportunity

Analysts view the recent market dip as a profitable moment to buy more at a lower price. The community interprets this decline as the last correction before a potential surge ahead of the ETF approval by the SEC. PlanB, a prominent crypto analyst, suggests that the recent market downturn might be an attempt at stop-loss hunting.

This strategy seems to target leveraged long positions for liquidation before any possible market uplift following the ETF decision. Such moves are not rare, especially among major players, who use significant price shifts to activate stop-loss orders and increase market fluctuations.

Some analysts have pointed out that the liquidations observed were normal within the norms of Bitcoin’s bull market cycles.

According to Bloomberg ETF Analyst Eric Balchunas, there is no indication suggesting anything other than approval for the Bitcoin Spot ETF. Balchunas expressed confusion over Matrixport analysts’ rapid change in sentiment, maintaining a strong belief that the probability of the ETF’s approval remains as high as 90%.

However, the crypto market and Bitcoin quickly recovered from its low of $40K, driven by substantial buying activity.