Bitcoin Speed Bump: A Week’s Surge Crumbles In Just 20 Minutes

Christian Encila

1 year ago

3 mins read

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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.

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 anticipate a price spike in the months that follow the anticipated halving of Bitcoin in the spring of 2024.

BTCUSD trading at $41,877 on the daily chart: TradingView.com

Although some investors are excited by the prospect of an ETF, the market as a whole is feeling positive and anticipating significant changes to the cryptocurrency environment.

The price of Bitcoin has risen by about 150% since the start of the year, despite the hiccup. The main driver of the surge has been expectations that large financial institutions will soon be able to purchase significant exposure to Bitcoin through exchange-traded funds (ETFs).

The market’s common expectation that the US Federal Reserve would start cutting interest rates in the middle of 2024 has added to the support for Bitcoin’s price climb.

Featured image from Adobe Stock

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.