February 23, 2024

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Bitcoin erased nearly a week of gains in 20 minutes, falling below $41,000

Bitcoin erased nearly a week of gains in 20 minutes, falling below $41,000

The price of Bitcoin (BTC) briefly fell below $41,000 in December. It was released on September 11 at 2:15 AM UTC, after a sudden 6.5% drop from $43,357 to $40,659 in a 20-minute period.

At press time, Bitcoin was trading slightly higher from a local low of $41,960, per TradingView. Data.

Bitcoin briefly fell 6.5% to $40,659 before evening at just under $42,000. Source: Trading View

Ethereum (ETH), the second-largest cryptocurrency by market cap, also saw a surprise decline, falling more than 8.9% in the same time frame. ETH price has since stabilized and is trading at $2,233, down 5.3% on the day.

Other large-cap crypto assets, including Binance Coin (BNB), Ripple (XRP), and Solana (SOL) also registered losses.

according to Data From CoinGlass, the short dip caused over $270 million worth of long positions to be liquidated. The decline also wiped out about $1.2 billion in open interest in Bitcoin, currently standing at about $17.9 billion.

Over $270 million worth of long BTC positions were liquidated due to the sudden decline. Source: Coinglass

Funnily enough, the withdrawal came just minutes after Wolf of All Street’s Scott Melker noted that Bitcoin had just closed its eighth green weekly candle, adding the observation: “When’s the correction, sir?”

The withdrawal marks the biggest single-day decline for Bitcoin in over a month, with the asset growing more than 12% over the past 30 days.

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However, Bitcoin has risen more than 150% since January. 1 this year. The uptrend was primarily driven by the expectation that the US Securities and Exchange Commission will approve several Bitcoin exchange-traded funds (ETFs), allowing large institutions to gain significant exposure to the asset for the first time.

Adding to Bitcoin’s rise are broader market expectations that the US Federal Reserve will begin cutting interest rates in the middle of next year.

Investors are also bracing for the next round of inflation data as well as the final FOMC meeting this year, with most analysts expecting an improvement in core inflation and betting the Fed will keep interest rates where they are now.

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