Bitcoin wipes nearly a week of gains in 20 minutes, falling under $41K – Cointelegraph

Bitcoin (BTC) price briefly fell below $41,000 at 2:15 a.m. UTC on December 11th, after suddenly dropping 6.5% from $43,357 to $40,659 in 20 minutes.

At the time of publication, Bitcoin was trading slightly up from a local low of $41,960 per TradingView. data.

Bitcoin briefly fell 6.5% to $40,659 and has since fallen just below $42,000. Source: TradingView

Ether (ETH), the second largest cryptocurrency by market capitalization, also witnessed a sudden decline, dropping over 8.9% in the same time frame. ETH price has since stabilized and is trading 5.3% lower on the day at $2,233.

Other large crypto assets such as Binance Coin (BNB), Ripple (XRP), and Solana (SOL) also posted losses.

according to data Over $270 million worth of long positions were liquidated from CoinGlass due to the short-term decline. This drop also wiped out about $1.2 billion in BTC's open interest, which now stands at about $17.9 billion.

The sudden drop led to the liquidation of over $270 million worth of BTClong positions.Source: Coin Glass

This drawdown is interesting because Wolf of All Street's Scott Melker pointed out that Bitcoin just closed its 8th green candle of the week and asked, “When is the correction? This happened just minutes after he added the remark.

The drawdown was Bitcoin's biggest single-day decline in over a month, with Bitcoin assets increasing by more than 12% over the past 30 days.

Related: Bitcoin dominance threatens 'top potential' even as BTC price aims for $45,000

However, Bitcoin has risen more than 150% since January 1st of this year. This uptrend has been primarily driven by expectations that the US SEC will approve several spot Bitcoin exchange traded funds (ETFs), allowing large institutions to gain significant exposure to this asset for the first time. .

What is spurring Bitcoin's rise is widespread market expectations that the U.S. Federal Reserve will begin lowering interest rates in the middle of next year.

Investors are also gearing up for the next round of inflation numbers and the final FOMC meeting of the year, with most analysts expecting an improvement in core inflation and betting the Fed will keep interest rates at current levels. ing.

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