Bitcoin Faces 7% Drop, Triggers Market Correction and Potential Altcoins Bull Run
Summary:
On December 11, Bitcoin's value dropped by 7%, hitting a four-month low of $41,329 and erasing the previous week's growth. This downturn also affected altcoins, which saw a double-digit drop in prices. Experts view the event as a normal part of the cryptocurrency cycle, potentially leading to a more stable market. There is ongoing speculation that this dip could catalyze a bull run for altcoins. Additionally, over $400 million in leveraged crypto positions were liquidated, but Bitcoin has since recovered to over $42,000. Despite an extended period of stable pricing, Bitcoin has seen a 50% increase since its October breakout, with significant potential seen in the lead up to the anticipated Bitcoin reward halving in April 2024.
A significant price drop of 7% in Bitcoin (BTC) was observed on December 11, effectively erasing the growth achieved over the previous week. This sudden plunge has brought Bitcoin's value down to its lowest in four months at $41,329. Altcoins also saw a decrease in value, with many experiencing a double-digit drop following Bitcoin's downturn. Despite this, industry experts maintain that this is a normal part of the cryptocurrency's price journey, especially given the bullish surge of the last two months. Co-founder of Reflexivity Research and prominent crypto analyst expressed this viewpoint on Twitter, emphasizing that such market corrections serve to remove unstable elements, thereby creating a sturdier base for future upswings.
On the same day, a cryptocurrency trader named Remen opined in a post that this recent downturn may actually catalyze a fresh bull run for altcoins. He also predicted a protracted period of fluctuations before BTC resumes its upward trend, given that BTC's prevalence appears to have peaked.
In this downturn, over $400 million in leveraged crypto positions were also liquidated, thereby resetting the marketplace. Despite this, the BTC has since bounced back to exceed $42,000. Since the momentum shift in October, Bitcoin, the world's leading cryptocurrency, has achieved remarkable progress, racking up gains nearing $10,000 in the past 30 days. Yet, it seems to have been stuck in a sideways trajectory for almost half a year. Crypto expert, Hitesh, highlighted the breakout of Bitcoin after this extended stability.
Since its breakout at the close of October, Bitcoin's price has surged by 50%. According to Hitesh, the on-chain data implies continuous purchase activities by accounts holding more than 1 BTC, indicating that Bitcoin whales are steadily accruing. Coupled with the increased participation of institutional investors and the escalating interest of financial powerhouses jostling for the pole position of the first Bitcoin ETF, this has created an optimal climate for Bitcoin in the lead up to the significant event of Bitcoin reward halving slated for April 2024.
Published At
12/11/2023 12:46:00 PM
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